Stablecoins are an alternative digital currency that is pegged to a basket of traditional currencies and other assets. They are designed to address the shortcomings of first-generation cryptocurrencies in providing adequate monetary services. They represent a disruptor to the payment and finance industries in an era where offerings by technology companies, such as Facebook’s Libra project, are substituting the services of traditional banks. If not correctly understood, this trend could disrupt the dynamics of foreign exchange markets and the monetary policies used by central banks to monitor and influence the demand for fiat currencies. We provide recommendations for the Group of 20 (G20) and the International Monetary Fund (IMF) to assess the impact of and develop regulations for global stablecoins before their widescale circulation.
Fatima Yousef Al Sebaie
Jose Siaba Serrate
Bertrand is a research fellow focusing on the impact of market regulation and liberalization in energy markets. An experienced energy systems…Bertrand is a research fellow focusing on the impact of market regulation and liberalization in energy markets. An experienced energy systems model developer (linear optimization and mixed complementary problems), he is working on developing the KAPSARC Energy Model (KEM) as a decision support tool for analyzing price regulation in energy economies. Bertrand has contributed to the development of KEM Saudi Arabia and is the lead developer of KEM China, studying the impact of government regulation in the coal, power and natural gas markets. He was previously employed as a research assistant at the Canadian Space Agency.