The global central bank cooperative body envisions stablecoins within the context of international standards for payment, clearing, and settlement systems.
Among the different types of digital assets, global authorities seem most focused on stablecoins.
This concern is the result of a few factors:
–Stablecoin use has ballooned in a very short time, going from less than US$3 billion in market capitalization at the beginning of 2019 to approximately US$130 billion as of October 2021.
–Stablecoins are intimately connected with the financial system because they function as an intermediary between traditional markets and cryptoasset markets.
–Stablecoin arrangements are in many cases opaque regarding the nature of the asset reserves underlying their currency peg.
–Stablecoins remain mostly unregulated.
Understanding and containing the systemic risks in this burgeoning asset class is therefore a top priority for regulators worldwide.