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From Stablecoins to Central Bank Digital Currencies

by CBDC Insider Staff
August 19, 2020
in Business, US
Reading Time: 1min read
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From Stablecoins to Central Bank Digital Currencies
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As privately issued stablecoins continue to encroach on more traditional forms of money—like cash and bank deposits—policymakers will not simply look on from the sidelines. They will arbitrate. Their rules and actions will determine how we will eventually pay for everyday items like a cup of coffee, and, more importantly, will affect the structure and risks of our financial sector.
Our last blog introduced stablecoins—cryptographic tokens that can be easily exchanged, benefitting from minimal price volatility relative to cash. Consumers might quickly adopt these new, cheaper, faster, and more user-friendly services integrated into their social media platforms. However, these also come with notable risks that require prompt regulatory action.

“The world of fiat money is in flux, and innovation will transform the landscape of banking and money.

Continue read: https://blogs.imf.org/2019/09/26/from-stablecoins-to-central-bank-digital-currencies/

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