Far too often, regulators, policy makers, and commentators have looked at potential stablecoin regulation and assessed the risks relative those presented by the institutions facilitating these traditional forms of payments. I believe that stablecoins do not present more or less risk, but rather different risks. In one sense, the fully-backed nature of stablecoins can help mitigate against systemic risk and make supervision of their holdings far simpler for regulators than traditional banks. On the other hand, stablecoins present unique operational risks based on their underlying technology and use in new forms of payment activity that may not have been previously considered by regulators.
Related posts
-
Justin Sun Developing Gasless Transaction Stablecoin Solution for Tron and EVM Chains
Justin Sun, founder of Tron, a smart contracts-enabled blockchain,... -
Fed’s Minutes Report Cites High Inflation and Economic Risks in Decision to Hold Rates
According to the minutes from the Federal Reserve’s Federal... -
Opera’s Minipay Expands Stablecoin Support: Adds USDC and USDT to Its Digital Wallet
Minipay, an integral feature of the Opera Mini browser,...