European Parliament and Council of the European Union · 2023 · Policy / legal text · Official Journal of the European Union
The EU's comprehensive crypto-asset framework; regulates stablecoins as e-money tokens (EMTs) and asset-referenced tokens (ARTs).
Key findings
- Classifies fiat-pegged stablecoins as e-money tokens (EMTs) and multi-asset/other pegs as asset-referenced tokens (ARTs).
- Requires issuer authorisation, adequately backed reserves, and redemption at par for holders.
- Imposes usage/transaction caps on large non-euro tokens used widely as a means of exchange.
Bank of England · 2023 · Report · Bank of England Discussion Paper
The Bank of England's proposed regime for stablecoins used at systemic scale in UK payments.
Key findings
- Systemic payment stablecoins should be backed by deposits at the central bank (or equivalent high-quality assets).
- Proposes holding limits during a transition to manage financial-stability risks.
CPMI, IOSCO · 2022 · Report · CPMI-IOSCO (BIS)
Confirms that systemically important stablecoin arrangements must meet the international standards for payment systems.
Key findings
- Systemic stablecoin arrangements are expected to observe the Principles for Financial Market Infrastructures.
- Emphasises settlement finality, governance and comprehensive risk management.
European Central Bank · 2022 · Report · ECB Macroprudential Bulletin, Issue 18
ECB assessment of stablecoin functions (trading, settlement, DeFi collateral) and their financial-stability risks.
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.
Bank for International Settlements · 2022 · Report · BIS Annual Economic Report 2022, Chapter III
The BIS's vision of a future monetary system, assessing stablecoins and crypto against a central-bank-money core.
Key findings
- Argues stablecoins piggyback on the credibility of central-bank money and can fragment the monetary system.
- Positions CBDCs and tokenised central-bank money as the preferred foundation.
President's Working Group on Financial Markets, FDIC, OCC · 2021 · Policy / legal text · U.S. Department of the Treasury
The landmark US interagency report recommending that payment-stablecoin issuers be regulated as insured depository institutions.
Key findings
- Recommends Congress require payment-stablecoin issuers to be insured depository institutions.
- Identifies run risk, payment-system risk, and systemic risk / concentration of economic power as the principal concerns.
- Set the template for subsequent US stablecoin legislation.
G7 Working Group on Stablecoins · 2019 · Report · Committee on Payments and Market Infrastructures (BIS)
The G7 report that put 'global stablecoins' on the international policy agenda after Libra.
Key findings
- Global stablecoins could pose risks to monetary sovereignty, financial stability and fair competition.
- No global stablecoin should launch until legal, regulatory and oversight challenges are addressed.
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.