Working paper · 2020
Stablecoins: risks, potential and regulation
⚠ The summary and findings below are the editor's working notes, pending verification against the source.
A foundational BIS framework classifying stablecoins by design and reserve model and mapping their risks to regulatory options.
Research questionWhat are the design types, risks and appropriate regulatory treatment of stablecoins?
MethodologyConceptual / policy analysis with a design taxonomy
Constructsstablecoin design; reserve backing; regulatory perimeter
Key findings
- Stablecoins span a spectrum from fully reserved tokenised funds to fractional and algorithmic designs, with materially different risk profiles.
- Regulation should follow a 'same risk, same regulation' principle rather than treating all stablecoins alike.
- Global stablecoins raise cross-border, monetary-sovereignty and financial-stability concerns beyond any single jurisdiction.
Limitations: Pre-dates most large-scale empirical stablecoin data; conceptual rather than empirical.
Topics: Regulation & Policy · Design & Economics · Financial Stability & Systemic Risk
Cite this
Douglas Arner, Raphael Auer, Jon Frost (2020). Stablecoins: risks, potential and regulation BIS Working Papers No. 905.
BibTeX
@techreport{arner2020stablecoinsrisks,
title = {Stablecoins: risks, potential and regulation},
author = {Douglas Arner and Raphael Auer and Jon Frost},
year = {2020},
institution = {Bank for International Settlements},
howpublished = {BIS Working Papers No. 905},
url = {https://www.bis.org/publ/work905.htm},
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