Report · 2022

Stablecoins' role in crypto and beyond: functions, risks and policy

European Central Bank · ECB Macroprudential Bulletin, Issue 18 · European Central Bank

⚠ The summary and findings below are the editor's working notes, pending verification against the source.

ECB assessment of stablecoin functions (trading, settlement, DeFi collateral) and their financial-stability risks.

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Key findings

Largest stablecoins are used mainly for crypto trading, settlement and DeFi rather than real-economy payments.
Reserve opacity and redemption terms are key risks warranting regulation.

Topics: Financial Stability & Systemic Risk · Regulation & Policy · Payments & Settlement

Cite this

European Central Bank (2022). Stablecoins' role in crypto and beyond: functions, risks and policy ECB Macroprudential Bulletin, Issue 18.

BibTeX

@techreport{ecb2022stablecoinsrolecryptobeyond,
  title = {Stablecoins' role in crypto and beyond: functions, risks and policy},
  author = {European Central Bank},
  year = {2022},
  institution = {European Central Bank},
  howpublished = {ECB Macroprudential Bulletin, Issue 18},
  url = {https://www.ecb.europa.eu/press/financial-stability-publications/macroprudential-bulletin/html/ecb.mpbu202207_2~836f682ed7.en.html},
  note = {Indexed by Stablecoin Beat},
}

Indexed by Stablecoin Beat — we link to and summarise sources; we do not host copyrighted full text, and summaries are our own. · All research · Methodology