Regulating the Crypto Ecosystem: The Case of Stablecoins and Arrangements

September 26, 2022

Preview Citation

Format: Chicago

Regulating the Crypto Ecosystem: The Case of Stablecoins and Arrangements, (USA: International Monetary Fund, 2022) accessed September 18, 2024

Summary

Stablecoins have experienced periods of rapid growth, accelerated links with traditional finance. Without proper regulation, contagion risks to wider financial sector will increase. Global regulation for stablecoins should be comprehensive, consistent, risk-based, flexible, and focus on their structural features and use. Requirements on stablecoins should cover the entire ecosystem and all its key functions, and there should be additional oversight for systemic stablecoin arrangements. In markets where risks are growing quickly, authorities should take immediate action by using all the tools at their disposal. This note provides key elements that should feature in any regulatory arrangement. For effective implementation, domestic and international collaboration are key.

Subject: Blockchain and DLT, Central Banks, Deposit insurance, Digital currencies, Economic sectors, Financial crises, Reserve assets, Technology, Virtual currencies

Keywords: Blockchain and DLT, CPMI-IOSCO, Crypto Ecosystem, Crypto-asset, DeFi, Deposit insurance, Digital currencies, DLT, Economic sectors, Emerging technologies, E-money regulation, Financial crises, Financial sector policy and analysis, Financial sector stability, Financial services, Fintech, FSB, Global, IMF Fintech Note 2022/008, Infrasctructures to Stablecoin arrangement, IOSCO, Regulation, Reserve assets, Stablecoin, Stablecoin regulation, Systemic risk, Technology, TerraUSD, Tether, Virtual currencies

Publication Details

Pages:

47
Volume:

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DOI:

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Issue:

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Series:

Fintech Notes No 2022/008
Stock No:

FTNEA2022008
ISBN:

9798400221675
ISSN:

2664-5912

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