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Financial Stability & Systemic Risk

Systemic risk, contagion, run risk and spillovers to short-term funding markets.

13 of 33 indexed papers · the whole library

Paper Venue Year
Anchoring trust in money: innovation beyond stablecoins Bank for International SettlementsThe BIS's flagship annual report argues that stablecoins as currently designed fail to deliver the singleness, elasticity, and integrity of money, and that the path forward is tokenizing central bank and commercial bank money on unified ledgers rather than relying on private stablecoins. BIS Annual Economic Report 2026, Chapter III 2026
Stablecoins and Fragility in Fixed Exchange Rate Regimes Brandon Joel TanA global-games model of how dollar stablecoins affect parallel FX markets under fixed or managed exchange rates: stablecoins both widen access to foreign currency and create a common public price that can coordinate runs, so their welfare effect is state-dependent — beneficial when misalignment is low, destabilizing when it is high. IMF Working Paper WP/26/144, Western Hemisphere Department 2026
High-level Recommendations for the Regulation, Supervision and Oversight of Global Stablecoin Arrangements Financial Stability BoardThe FSB's finalized international recommendations for regulating global stablecoin arrangements. Financial Stability Board 2023
Regulatory regime for systemic payment systems using stablecoins and related service providers Bank of EnglandThe Bank of England's proposed regime for stablecoins used at systemic scale in UK payments. Bank of England Discussion Paper 2023
Silicon Valley Bank bankruptcy and Stablecoins stability Luca Galati, Francesco CapalboThe work examines the contagion effects across major digital assets during the Silicon Valley Bank collapse in early March 2023. It finds evidence of contagion among major stablecoins and Bitcoin, along with significant abnormal movements in stablecoin cumulative returns and volumes. International Review of Financial Analysis 2023
Application of the Principles for Financial Market Infrastructures to stablecoin arrangements CPMI, IOSCOConfirms that systemically important stablecoin arrangements must meet the international standards for payment systems. CPMI-IOSCO (BIS) 2022
Stablecoins' role in crypto and beyond: functions, risks and policy European Central BankECB assessment of stablecoin functions (trading, settlement, DeFi collateral) and their financial-stability risks. ECB Macroprudential Bulletin, Issue 18 2022
Stablecoins: Growth Potential and Impact on Banking Gordon Y. Liao, John CaramichaelFed staff analysis of how stablecoin growth could affect bank funding and credit, depending on reserve design. Federal Reserve International Finance Discussion Papers No. 1334 2022
DeFi risks and the decentralisation illusion Sirio Aramonte, Wenqian Huang, Andreas SchrimpfBIS analysis arguing DeFi retains points of centralisation and carries familiar financial risks. BIS Quarterly Review, December 2021 2021
Report on Stablecoins President's Working Group on Financial Markets, FDIC, OCCThe landmark US interagency report recommending that payment-stablecoin issuers be regulated as insured depository institutions. U.S. Department of the Treasury 2021
Taming Wildcat Stablecoins Gary B. Gorton, Jeffery Y. ZhangArgues stablecoins recreate the instability of the 19th-century 'wildcat' free-banking era and proposes regulating issuers like banks or issuing a CBDC. SSRN Working Paper; later University of Chicago Law Review Top-tier journal 2021
Stablecoins: risks, potential and regulation Douglas Arner, Raphael Auer, Jon FrostA foundational BIS framework classifying stablecoins by design and reserve model and mapping their risks to regulatory options. BIS Working Papers No. 905 2020
Investigating the impact of global stablecoins G7 Working Group on StablecoinsThe G7 report that put 'global stablecoins' on the international policy agenda after Libra. Committee on Payments and Market Infrastructures (BIS) 2019
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