Stablecoin: Difference between revisions
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imported>Doug Williamson (Add quote - source - Bank of England - https://www.bankofengland.co.uk/speech/2023/april/jon-cunliffe-keynote-speech-at-the-innovate-finance-global-summit) |
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A stablecoin is usually a privately issued cryptoasset that aims to provide price stability by backing the coin with other assets. | A stablecoin is usually a privately issued cryptoasset that aims to provide price stability by backing the coin with other assets. | ||
:<span style="color:#4B0082">'''''Banks use stablecoins - design, regulation & risks'''''</span> | |||
:"... various banks and other traditional payment service providers [have] started to use stablecoins for their activities or to issue stablecoins to their customers... | |||
:In August 2023, PayPal launched a USD-based stablecoin (PYUSD) with Paxos. | |||
:In addition, in September 2023, Visa announced it was expanding its stablecoin settlement capabilities with USD Coin (USDC) issued by Circle to merchant acquirers. | |||
:These examples show that stablecoins are no longer the sole domain of cryptoasset providers and may boost the uptake of stablecoins for payments outside the crypto ecosystem. | |||
:If not properly designed and regulated, the large-scale use of stablecoins for payments could have serious implications for the safety and efficiency of payment ecosystems." | |||
:''BIS survey on central bank digital currencies and crypto | |||
- Association of Corporate Treasurers Payments landscape blog, Naresh Aggarwal, Associate Director, Policy & Technical, 19 July 2024.'' | |||
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:''Association of Corporate Treasurers Payments landscape blog, Naresh Aggarwal, Associate Director, Policy & Technical, 20 January 2021.'' | :''Association of Corporate Treasurers Payments landscape blog, Naresh Aggarwal, Associate Director, Policy & Technical, 20 January 2021.'' | ||
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* [[Altcoin]] | * [[Altcoin]] | ||
* [[Asset-referenced token]] (ART) | * [[Asset-referenced token]] (ART) | ||
* [[Bank for International Settlements]] (BIS) | |||
* [[Bitcoin]] | * [[Bitcoin]] | ||
* [[Blockchain]] | * [[Blockchain]] | ||
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* [[Distributed ledger]] | * [[Distributed ledger]] | ||
* [[E-money token]] (EMT) | * [[E-money token]] (EMT) | ||
* [[Ecosystem]] | |||
* [[Fiat currency]] | * [[Fiat currency]] | ||
* [[Financial asset]] | * [[Financial asset]] | ||
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* [[Money]] | * [[Money]] | ||
* [[Protocol]] | * [[Protocol]] | ||
* [[Regulation]] | |||
* [[Ripple]] | * [[Ripple]] | ||
* [[Risk management]] | |||
* [[Token]] | * [[Token]] | ||
* [[Treasury]] | |||
* [[Unbacked]] | * [[Unbacked]] | ||
* [[USD Coin]] | * [[USD Coin]] | ||
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== | ==Other resources== | ||
*[https://www.bis.org/publ/bppdf/bispap147.pdf Embracing diversity, advancing together – results of the 2023 BIS survey on central bank digital currencies and crypto - Bank for International Settlements (BIS) Paper 147 - June 2024] | |||
*[https://www.bankofengland.co.uk/speech/2023/april/jon-cunliffe-keynote-speech-at-the-innovate-finance-global-summit Speech by Sir Jon Cunliffe, Bank of England Deputy Governor for Financial Stability - Innovate Finance Global Summit - 17 April 2023] | *[https://www.bankofengland.co.uk/speech/2023/april/jon-cunliffe-keynote-speech-at-the-innovate-finance-global-summit Speech by Sir Jon Cunliffe, Bank of England Deputy Governor for Financial Stability - Innovate Finance Global Summit - 17 April 2023] | ||
*[https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op223~3ce14e986c.en.pdf Crypto-Assets: Implications for financial stability, monetary policy, and payments and market infrastructures, May 2019, ECB Report] | *[https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op223~3ce14e986c.en.pdf Crypto-Assets: Implications for financial stability, monetary policy, and payments and market infrastructures, May 2019, ECB Report] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Financial_products_and_markets]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_frameworks]] | |||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:Financial_products_and_markets]] | |||
[[Category:Identify_and_assess_risks]] | [[Category:Identify_and_assess_risks]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
[[Category: | [[Category:The_business_context]] | ||
Revision as of 12:23, 24 July 2024
Cryptoassets - volatility.
A stablecoin is usually a privately issued cryptoasset that aims to provide price stability by backing the coin with other assets.
- Banks use stablecoins - design, regulation & risks
- "... various banks and other traditional payment service providers [have] started to use stablecoins for their activities or to issue stablecoins to their customers...
- In August 2023, PayPal launched a USD-based stablecoin (PYUSD) with Paxos.
- In addition, in September 2023, Visa announced it was expanding its stablecoin settlement capabilities with USD Coin (USDC) issued by Circle to merchant acquirers.
- These examples show that stablecoins are no longer the sole domain of cryptoasset providers and may boost the uptake of stablecoins for payments outside the crypto ecosystem.
- If not properly designed and regulated, the large-scale use of stablecoins for payments could have serious implications for the safety and efficiency of payment ecosystems."
- BIS survey on central bank digital currencies and crypto
- Association of Corporate Treasurers Payments landscape blog, Naresh Aggarwal, Associate Director, Policy & Technical, 19 July 2024.
- Not all stablecoins are equally stable
- "The umbrella term ‘stablecoin’ has been used to describe a range of instruments with quite different characteristics.
- In particular, they may be backed by a range of financial assets, commodities or unbacked cryptoassets (which in some cases are supported by algorithmic protocols).
- The robustness of those backing assets and the wider safeguards for guaranteeing stability of value vary significantly across the products labelled as stablecoins."
- Sir Jon Cunliffe, Bank of England Deputy Governor for Financial Stability - Innovate Finance Global Summit - 17 April 2023.
- CBDC pilot
- "Le Banque de France announced on January 19 that a pilot saw 2 million euro worth of simulated shares purchased and sold by investors using a CBDC.
- It took place with distributed ledger technology provided by SETL — a UK-based regulated blockchain services provider - which also provided the CBDC stablecoin."
- Association of Corporate Treasurers Payments landscape blog, Naresh Aggarwal, Associate Director, Policy & Technical, 20 January 2021.
See also
- Algorithm
- Altcoin
- Asset-referenced token (ART)
- Bank for International Settlements (BIS)
- Bitcoin
- Blockchain
- Britcoin
- Central bank digital currency (CBDC)
- Commodity
- Cryptoassets
- Cryptocurrency
- Cryptography
- Distributed ledger
- E-money token (EMT)
- Ecosystem
- Fiat currency
- Financial asset
- Intangible assets
- Internal Crypto-Assets Task Force
- Monetary policy
- Money
- Protocol
- Regulation
- Ripple
- Risk management
- Token
- Treasury
- Unbacked
- USD Coin
- Volatility
