ESRB says central banks may be forced to intervene in stablecoin crises
New report lists concerns around regulatory arbitrage, de-pegging and monetary sovereignty
Financial authorities may have to support troubled banks that have become involved in stablecoins, the European Systemic Risk Board (ESRB) has warned.
In a report published on October 20, the ESRB writes that “several past episodes of financial turbulence” proved that financial authorities may be induced to “step in and support troubled financial institutions, even in the absence of ex ante guarantees” in the context of multi-issuer stablecoins.
These assets, which European authorities have warned
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