Fed paper explores stablecoins’ impact on financial system
New research published by the Federal Reserve explores how different structures underpinning stablecoins can impact the financial sector and the wider economy.
Authors Gordon Liao and John Caramichael find a “two-tier” structure, where stablecoins are backed by commercial bank reserves, can both support stablecoin issuance and maintain credit intermediation.
A more radical design, a “narrow-bank” structure, where stablecoins are fully backed by central bank reserves, could be more stable but
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
More on Crypto Assets
No stablecoin has always been able to maintain parity – paper
Authors warn there is no guarantee that issuers can redeem stablecoins on demand
BoE wants stablecoins fully backed with central bank deposits
Systemic stablecoins would have to back issuance with unremunerated deposits
Sam Bankman-Fried takes the stand in wire fraud trial
FTX head says he doesn’t know how $9 billion in funds disappeared
US Treasury division proposes crypto mixer regulation
Proposals target terrorism financing after Office of Foreign Assets Control sanctions Hamas
Stablecoins more vulnerable to runs, say Fed researchers
Authors point out similarities with MMFs and warn about financial instability risks
Australia proposes crypto regulation reforms
Platform operators would need a licence and be subject to financial services laws
Fed watchdog says supervisors could have stopped Silvergate
Failed California bank should have required permission for switch into cryptocurrency
BIS project maps ‘vast and complex’ global crypto network
Project Atlas uses diverse data to allow central banks to track cross-border flows