Stablecoin growth - policy challenges and approaches

Iñaki Aldasoro, Matteo Aquilina, Ulf Lewrick and Sang Hyuk Lim

No 108, BIS Bulletins from Bank for International Settlements

Abstract: Stablecoins' linkages with the traditional financial system are growing, which raises policy challenges ranging from preserving financial integrity to mitigating financial stability risks. Broader use of foreign currency-denominated stablecoins could raise concerns about monetary sovereignty and, in some jurisdictions, erode the effectiveness of existing foreign exchange regulations. The principle of "same risks, same regulation" faces limitations in the context of stablecoins, highlighting the need for tailored regulatory approaches that address the nature and specific features of stablecoins.

Pages: 8 pages
Date: 2025-07-11
New Economics Papers: this item is included in nep-mon and nep-pay
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