Gordon Y. Liao, John Caramichael · 2022 · Working paper · Federal Reserve International Finance Discussion Papers No. 1334
Fed staff analysis of how stablecoin growth could affect bank funding and credit, depending on reserve design.
Key findings
- Stablecoins backed by commercial-bank deposits or Treasuries have very different effects on credit intermediation.
- A two-tiered / narrow-bank reserve model can preserve credit while supporting stablecoin growth.
Tobias Adrian, Tommaso Mancini-Griffoli · 2019 · Report · IMF FinTech Note No. 19/01
Introduces a taxonomy of money and argues privately issued digital money (e-money / stablecoins) could rapidly displace bank deposits.
Key findings
- Proposes a taxonomy distinguishing e-money/stablecoins from bank deposits and central-bank money.
- Adoption of e-money could be rapid via network effects and erode bank deposit funding (disintermediation).
- Coins the risk of 'digital dollarization' in economies with weak currencies.