Here is our pick of the 3 most important Stablecoin stories during the week.
CBDC’s are trying hard to stay in the game.
This week we heard a lot about CBDC’s and how they could be implemented. The Bank of England (BoE), Bank of International Settlements (BIS) and IOSCO all weighed in with lots of reports.
First, the Bank of England announced that it had established two forums.
- The CBDC Engagement Forum looks at all aspects of a central bank digital currency apart from the technology it might use.
- The CBDC Technology Forum looks at the technology a central bank digital currency might use. The forum enables us to involve people with a wide range of expertise and perspectives. This helps us to understand the technological challenges of designing, implementing and operating a CBDC.
But the BoE made it clear no decision had been made on proceeding with a CBDC. In the meantime, those wishing to contact the bank are welcome to cbdc@bankofengland.co.uk
UK central bank digital currency | Bank of England
Then came further clarity on the regulation of stablecoins. Major stablecoins must comply with the same safeguards as traditional forms of payments. IOSCO, a global body for securities regulators, and a committee at the Bank for International Settlements (BIS), a forum for central banks, said on Wednesday they had formally adopted proposals put out to public consultation last October.
Global regulators back ‘same risk, same regulation’ for stablecoins | Reuters
And finally, a Joint report focusing on how all these CBDC’s could interoperate was presented to the G20 by the Bank for International Settlements’ Committee on Payments and Market Infrastructures, the BIS Innovation Hub, the International Monetary Fund (IMF) and the World Bank.
Options for access to and interoperability of CBDCs for cross-border payments (bis.org)
So it seems another forest has been sacrificed to regulators so that they can ponder the imponderable, “how do Central Banks move from gamekeeper (regulator) to poacher (deliverer of a product that people like)”. Not an easy one and hence why we will not be seeing anything to soon, if ever.
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Alan Scott is an expert in the FX market and has been working in the domain of stablecoins for many years.
Twitter @Alan_SmartMoney
We have a self imposed constraint of 3 news stories per week because we serve busy senior Fintech leaders who just want succinct and important information.
For context on stablecoins please read this introductory interview with Alan “How stablecoins will change our world” and read articles tagged stablecoin in our archives.
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