The Future of Stablecoins and Their Role in the Crypto Ecosystem | Crypto

The Future of Stablecoins and Their Role in the Crypto Ecosystem

– Stablecoins have experienced periods of rapid growth and have accelerated links with traditional finance.
– Without proper regulation, contagion risks to wider financial sector will increase.
– Global regulation for stablecoins should be comprehensive, consistent, risk-based, flexible, and focus on their structural features and use.
– Requirements on stablecoins should cover the entire ecosystem and all its key functions, and there should be additional oversight for systemic stablecoin arrangements.
– In markets where risks are growing quickly, authorities should take immediate action by using all the tools at their disposal.
– Key elements that should feature in any regulatory arrangement include:
– Covering the entire ecosystem
– Oversight for systemic stablecoin arrangements
– Immediate action in markets where risks are growing quickly
– Domestic and international collaboration are key for effective implementation.

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