45. Stablecoins

Stablecoins can offer global consumers the benefits of digital payments without the volatility and risk of cryptocurrencies such as Bitcoin. Clear legislation covering mechanisms for maintaining parity with an underlying benchmark, and the composition and safeguarding of reserves supporting stablecoin value, is a necessary step. Monitoring stablecoins to maintain financial system integrity and stability and providing stablecoin issuer standards are further elements that can provide regulatory clarity and promote innovation and growth in the stablecoin sector. These regulatory steps can help stablecoins challenge the traditional finance sector, while protecting consumers, thus enhancing the competitiveness of the entire financial sector.