Menu Expand
  1. Journals
  2. Economics, Finance, Business & Management
  3. Credit and Capital Markets – Kredit und Kapital
  4. Vol. 53, Issue 2
  5. pp. 159–185

JOURNAL ARTICLE

Cite JOURNAL ARTICLE

Style
Schäfer, S., Read, O. Financial and Monetary Stability Aspects of Global Stablecoins. Credit and Capital Markets – Kredit und Kapital, 53(2), 159-185. https://doi.org/10.3790/ccm.53.2.159
Schäfer, Stefan and Read, Oliver "Financial and Monetary Stability Aspects of Global Stablecoins" Credit and Capital Markets – Kredit und Kapital 53.2, 2020, 159-185. https://doi.org/10.3790/ccm.53.2.159
Schäfer, Stefan/Read, Oliver (2020): Financial and Monetary Stability Aspects of Global Stablecoins, in: Credit and Capital Markets – Kredit und Kapital, vol. 53, iss. 2, 159-185, [online] https://doi.org/10.3790/ccm.53.2.159
Format
Download

Financial and Monetary Stability Aspects of Global Stablecoins

Schäfer, Stefan | Read, Oliver

Credit and Capital Markets – Kredit und Kapital, Vol. 53 (2020), Iss. 2 : pp. 159–185

2 Citations (CrossRef)

Read Now Download (PDF)

Additional Information

Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/ccm.53.2.159
Language
English
Pages
27
Keywords

Author Details

Prof. Dr. Stefan Schäfer, Professor of Economics, Wiesbaden Business School, Hochschule RheinMain University of Applied Sciences, Bleichstraße 44, 65183 Wiesbaden, Germany

Prof. Dr. Oliver Read, Professor of Finance, Wiesbaden Business School, Hochschule RheinMain University of Applied Sciences, Bleichstraße 44, 65183 Wiesbaden, Germany

Cited By

  1. Artificial Intelligence for Sustainable Finance and Sustainable Technology

    Libra Currency and its Global Financial and Economic Impact

    Darwish, Saad | Abdul Rahman, Abdul Aziz | Meero, Abdelrhman

    2022

    https://doi.org/10.1007/978-3-030-93464-4_3 [Citations: 0]

  2. Digitaler Euro: Funktionsweise und kritische Würdigung

    Thießen, Friedrich

    Wirtschaftsdienst, Vol. 101 (2021), Iss. 7 P.529

    https://doi.org/10.1007/s10273-021-2960-z [Citations: 0]

References

  1. Adachi, M./Cominetta, M./Kaufmann, C./van der Kraaij, A. (2020): A regulatory and financial stability perspective on global stablecoins, ECB Macroprudential Bulletin, May 5th, 2020, available at: https://www.ecb.europa.eu/pub/financial-stability/macroprudential-bulletin/html/ecb.mpbu202005_1~3e9ac10eb1.en.html.  Google Scholar
  2. Adrian, T./Mancini-Griffoli, T. (2019): The rise of digital money, IMF FinTech notes, July 2019, available at: https://www.imf.org/en/Publications/fintech-notes/Issues/2019/07/12/The-Rise-of-Digital-Money-47097.  Google Scholar
  3. Amsden, Z. et al. (2019): The Libra Blockchain, Calibra staff paper, September 25th, 2019, available at: https://developers.libra.org/docs/assets/papers/the-libra-blockchain/2019-09-26.pdf.  Google Scholar
  4. Baughman, G./Flemming, J. (2020): Global Demand for Basket-Backed Stablecoins, February 7th, 2020, available at: https://www.jeanflemming.com/libra_main.pdf.  Google Scholar
  5. Baur, D./Hoang, L. (2020): A Crypto Safe Haven against Bitcoin, Finance Research Letters, January 2020, available at: https://www.researchgate.net/profile/Lai_Hoang2/publication/338577400_A_Crypto_Safe_Haven_against_Bitcoin/links/5e27ee544585150ee7785ee2/A-Crypto-Safe-Haven-against-Bitcoin.pdf.  Google Scholar
  6. Bilotta, N./Botti, F. (2019): Libra and the Others – the Future of Digital Money, Istituto Affari Internazionali, Vol. 19/22, November 2019, available at: https://www.iai.it/en/pubblicazioni/libra-and-others-future-digital-money.  Google Scholar
  7. Blummer, T. (2019): What if Libra is a Success? June 20th, 2019, available at: https://medium.com/@tamas.blummer/what-if-libra-is-a-success-661ca2f9c934.  Google Scholar
  8. Brühl, V. (2020): Libra – A Differentiated View on Facebook’s Virtual Currency Project, Intereconomics, 2020(1), 54–61.  Google Scholar
  9. Brunnermeier, M./James, H./Landau, J. (2019a): Digital Currency Areas, available at: https://voxeu.org/article/digital-currency-areas.  Google Scholar
  10. Brunnermeier, M./James, H./Landau, J. (2019b): The Digitalization of Money, Working Paper, Princeton University, August 2019, available at: https://scholar.princeton.edu/markus/publications/digitalization-money.  Google Scholar
  11. Bullmann, D./Klemm, J./Pinna, A. (2019): In search for stability in crypto-assets: are stablecoins the solution?, ECB Occasional Paper Series, No 230, August 2019, available at: https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op230~d57946be3b.en.pdf.  Google Scholar
  12. Caballero, R./Farhi, E./Gourinchas, P.-O. (2017): The Safe Assets Shortage Conundrum, Journal of Economic Perspectives, Vol. 31, 29–46.  Google Scholar
  13. Catalini, C. et al. (2019): The Libra Reserve, Calibra staff paper, August 14th, 2019, available at: https://libra.org/en-US/wp-content/uploads/sites/23/2019/06/TheLibraReserve_en_US.pdf.  Google Scholar
  14. Claeys, G./Demertzis, M. (2019): The Next Generation of Digital Currencies: In Search of Stability, The Future of Money, European Parliament, Econ Committee Monetary Dialogue, December 2019, 83–101.  Google Scholar
  15. Copeland, R. (2019): A Global Stablecoin – Revolutionary Reserve Asset or Reinventing the Wheel? Journal of Payments Strategy&Systems, Vol. 13 (2019), 310–321.  Google Scholar
  16. Demary, M./Demary, V. (2019): Kryptowährungen – alles anders mit Libra? ifo Schnelldienst, Vol 72(17), 2019, 17–19.  Google Scholar
  17. ECB Crypto-Assets Task Force (2019): Crypto-Assets: Implications for financial stability, monetary policy, and payments and market infrastructures, ECB Occasional Paper Series, No 223, May 2019, available at: https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op223~3ce14e986c.en.pdf.  Google Scholar
  18. European Central Bank (2019): Stablecoins – No Coins, but Are They Stable? In Focus, Vol. 3(2019), November 2019, available at: https://www.ecb.europa.eu/paym/intro/publications/pdf/ecb.mipinfocus191128.en.pdf.  Google Scholar
  19. European Securities and Markets Authority (2019): ESMA Report on Trends, Risks and Vulnerabilities, September 10th, 2019, Report No 2, 2019, available at: https://www.esma.europa.eu/sites/default/files/library/esma_50-165-883_report_on_trends_risks_and_vulnerabilities_no.2_2019.pdf.  Google Scholar
  20. European Securities and Markets Authority (2020): ESMA Report on Trends, Risks and Vulnerabilities, February 19th, 2020, Report No 1, 2020, URL: https://www.esma.europa.eu/sites/default/files/library/esma_50-165-1040_trv_no.1_2020.pdf.  Google Scholar
  21. Financial Times (2019): Carney Keeping ‘Open Mind’ to Facebook Backed Digital Currency, June 18th, 2019, available at: https://www.ft.com/content/189c1c66-91dd-11e9-aea1-2b1d33ac3271.  Google Scholar
  22. French Ministry of Economy/German Ministry of Finance (2019): Joint Statement on Libra, September 13th, 2019, available at: https://www.bundesfinanzministerium.de/Content/EN/Standardartikel/Topics/Financial_markets/Articles/2019-09-17-Libra.html.  Google Scholar
  23. G7 France (2019a): Update from the Chair of the G7 working group on stablecoins, G7 Finance Ministers and Central Bank Governors Meeting, 17–18 July 2019, available at: https://www.bis.org/cpmi/speeches/sp190718.htm.  Google Scholar
  24. G7 France (2019b): Chair’s Summary: G7 Finance Ministers and Central Bank Governors’ Meeting, Chantilly, 17–18 July 2019, available at: https://www.banque-france.fr/sites/default/files/media/2019/08/02/g7_chairs_summary_vff_en.pdf.  Google Scholar
  25. G7 France (2019c): Chair’s Statement on Stablecoins, Washington, October 17th, 2019, available at: https://www.mof.go.jp/english/international_policy/convention/g7/g7_20191017_01.pdf.  Google Scholar
  26. G7 Working Group on Stablecoins (2019): Investigating the Impact of Global Stablecoins, October 2019, available at: https://www.bis.org/cpmi/publ/d187.pdf.  Google Scholar
  27. Giudici, P./Leach, T./Pagnottoni, P. (2020): Libra or Librae? Basket-based Stablecoins to Mitigate Foreign Exchange Volatility Spillovers, DEM Working Paper Series, No 183 (02-2020), available at: http://economiaweb.unipv.it/wp-content/uploads/2018/01/DEMWP0183.pdf.  Google Scholar
  28. Groß, J./Herz, B./Schiller, J. (2019): Libra – Konzept und wirtschaftspolitische Implikationen, Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik, 2019(9), 625–631.  Google Scholar
  29. Gross, M./Siebenbrunner, C. (2019): Money Creation in Fiat and Digital Currency Systems, IMF Working Paper, WP/19/285, available at: https://www.imf.org/en/Publications/WP/Issues/2019/12/20/Money-Creation-in-Fiat-and-Digital-Currency-Systems-48843.  Google Scholar
  30. Handelsblatt (2019): Warnung vor Libra – Wie gefährlich ist Facebooks Kryptowährung? June 27th, 2019, available at: https://www.handelsblatt.com/finanzen/banken-versicherungen/experten-in-alarmbereitschaft-warnruf-vor-libra-wie-gefaehrlich-ist-facebooks-kryptowaehrung/24496570.html?ticket=ST-6011400-71YWPwZMaD5Fh5x9AXC4-ap3.  Google Scholar
  31. International Monetary Fund (2018a): Stablecoins, Central Bank Digital Currencies, and Cross-Border Payments: A New Look at the International Monetary System, Remarks by Tobias Adrian at the IMF-Swiss National Bank Conference, Zurich, May 2019, available at: https://www.imf.org/en/News/Articles/2019/05/13/sp051419-stablecoins-central-bank-digital-currencies-and-cross-border-payments.  Google Scholar
  32. International Monetary Fund (2018b): Considerations on the role of the SDR, IMF Policy Paper, April 2019, available at: https://www.imf.org/en/Publications/Policy-Papers/Issues/2018/04/11/pp030618consideration-of-the-role-the-sdr.  Google Scholar
  33. International Monetary Fund (2019): Special Drawing Rights, Fact Sheet, March 8, 2019, available at: https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/14/51/Special-Drawing-Right-SDR.  Google Scholar
  34. Kulkarni, R./Koizumi, N./Schintler, L./Stough, R. (2020): Cryptocurrency, Stablecoins and Blockchain: Exploring Digital Money Solutions for Remittances and Inclusive Economies, available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3511139.  Google Scholar
  35. Kunroo, M. (2015): Theory of Optimum Currency Areas – A Literature Review, Review of Market Integration, Vol. 7(2), 87–116.  Google Scholar
  36. Lagos, R. (2006): Inside and Outside Money, Research Department Staff Report 374, Federal Reserve Bank of Minneapolis, available at: https://www.minneapolisfed.org/research/sr/sr374.pdf.  Google Scholar
  37. Libra Association (2019): An Introduction to Libra, White Paper, June 2019, available at: https://libra.org/en-US/wp-content/uploads/sites/23/2019/06/LibraWhitePaper_en_US.pdf.  Google Scholar
  38. Libra Association (2020): Libra White Paper V2.0, April 2020, available at: https://libra.org/en-US/white-paper.  Google Scholar
  39. Mancini-Griffoli, T. et al. (2018): Casting Light on Central Bank Digital Curreny, IMF Staff Discussion Note, November 2018, available at: https://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2018/11/13/Casting-Light-on-Central-Bank-Digital-Currencies-46233.  Google Scholar
  40. Marthinsen, J./Gordon, S. (2019): A Theory of Optimum Cryptocurrency Scope, Economics of Innovation and New Technology, 2019, available at: https://www.tandfonline.com/doi/full/10.1080/10438599.2019.1687395.  Google Scholar
  41. Ocampo, J. (2019): Is It Time for a “True Global Currency”? April 8th, 2019, available at: https://www.weforum.org/agenda/2019/04/is-it-time-for-a-true-global-currency/.  Google Scholar
  42. Sandner, P. (2019): Facebook Coin: What would be the market capitalization of Libra? Would Libra be rated higher than Bitcoin? June 22nd, 2019, available at: https://medium.com/@philippsandner/facebook-coin-what-would-be-the-market-capitalization-of-libra-125f58645729.  Google Scholar
  43. Schmeling, M. (2019): What is Libra? Understanding Facebook’s Currency, SAFE Policy Letter, No. 76, September 2019, available at: https://safe-frankfurt.de/fileadmin/user_upload/editor_common/Policy_Center/SAFE_Policy_Letter_No_76.pdf.  Google Scholar
  44. Skeie, D. (2019): Digital Currency Runs, January 30, 2019, available at SSRN: https://ssrn.com/abstract=3294313.  Google Scholar
  45. Vasudevan, R. (2020): Libra and Facebook’s Money Illusion, Challenge, Vol. 63(1), 21–39.  Google Scholar
  46. Velasco, A./Chang, R. (2019): Will Facebook’s Libra Turn into a Cancer? Project Syndicate, July 16th, 2019, available at: https://www.project-syndicate.org/commentary/facebook-libra-becomes-cancer-by-andres-velasco-and-roberto-chang-2019-07?barrier=accesspaylog.  Google Scholar
  47. Xie, S. (2019): More Than a Third of China is Now Invested in One Giant Mutual Fund, The Wall Street Journal, March 27th 2019, available at: https://www.wsj.com/articles/more-than-a-third-of-china-is-now-invested-in-one-giant-mutual-fund-11553682785.  Google Scholar
  48. Zetzsche, D./Buckley, R./Arner, D. (2019): Regulating Libra: The Transformative Potential of Facebook’s Cryptocurrency and Possible Regulatory Responses, University of New South Wales Law Research Series, 2019/042, available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3414401.  Google Scholar
  49. Zetzsche, D./Buckley, R./Arner, D./Barberis, J. (2017): From FinTech to TechFin: The Regulatory Challenges of Data-Driven Finance, European Banking Institute, 6/2018, available at https://orbilu.uni.lu/bitstream/10993/38944/1/SSRN-id2959925.pdf.  Google Scholar
  50. Zhang, L./Chen, S. (2019): China’s Digital Economy: Opportunities and Risks, IMF Working Paper, Vol 16/2019, available at: https://www.imf.org/~/media/Files/Publications/WP/2019/wp1916.ashx.  Google Scholar
  51. International Monetary Fund (2019): Special Drawing Rights, Fact Sheet, March 8, 2019, available at: https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/14/51/Special-Drawing-Right-SDR.  Google Scholar
  52. Kulkarni, R./Koizumi, N./Schintler, L./Stough, R. (2020): Cryptocurrency, Stablecoins and Blockchain: Exploring Digital Money Solutions for Remittances and Inclusive Economies, available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3511139.  Google Scholar
  53. Kunroo, M. (2015): Theory of Optimum Currency Areas – A Literature Review, Review of Market Integration, Vol. 7(2), 87–116.  Google Scholar
  54. Lagos, R. (2006): Inside and Outside Money, Research Department Staff Report 374, Federal Reserve Bank of Minneapolis, available at: https://www.minneapolisfed.org/research/sr/sr374.pdf.  Google Scholar
  55. Libra Association (2019): An Introduction to Libra, White Paper, June 2019, available at: https://libra.org/en-US/wp-content/uploads/sites/23/2019/06/LibraWhitePaper_en_US.pdf.  Google Scholar
  56. Libra Association (2020): Libra White Paper V2.0, April 2020, available at: https://libra.org/en-US/white-paper.  Google Scholar
  57. Adachi, M./Cominetta, M./Kaufmann, C./van der Kraaij, A. (2020): A regulatory and financial stability perspective on global stablecoins, ECB Macroprudential Bulletin, May 5th, 2020, available at: https://www.ecb.europa.eu/pub/financial-stability/macroprudential-bulletin/html/ecb.mpbu202005_1~3e9ac10eb1.en.html.  Google Scholar
  58. Adrian, T./Mancini-Griffoli, T. (2019): The rise of digital money, IMF FinTech notes, July 2019, available at: https://www.imf.org/en/Publications/fintech-notes/Issues/2019/07/12/The-Rise-of-Digital-Money-47097.  Google Scholar
  59. Amsden, Z. et al. (2019): The Libra Blockchain, Calibra staff paper, September 25th, 2019, available at: https://developers.libra.org/docs/assets/papers/the-libra-blockchain/2019-09-26.pdf.  Google Scholar
  60. Baughman, G./Flemming, J. (2020): Global Demand for Basket-Backed Stablecoins, February 7th, 2020, available at: https://www.jeanflemming.com/libra_main.pdf.  Google Scholar
  61. Baur, D./Hoang, L. (2020): A Crypto Safe Haven against Bitcoin, Finance Research Letters, January 2020, available at: https://www.researchgate.net/profile/Lai_Hoang2/publication/338577400_A_Crypto_Safe_Haven_against_Bitcoin/links/5e27ee544585150ee7785ee2/A-Crypto-Safe-Haven-against-Bitcoin.pdf.  Google Scholar
  62. Bilotta, N./Botti, F. (2019): Libra and the Others – the Future of Digital Money, Istituto Affari Internazionali, Vol. 19/22, November 2019, available at: https://www.iai.it/en/pubblicazioni/libra-and-others-future-digital-money.  Google Scholar
  63. Blummer, T. (2019): What if Libra is a Success? June 20th, 2019, available at: https://medium.com/@tamas.blummer/what-if-libra-is-a-success-661ca2f9c934.  Google Scholar
  64. Brühl, V. (2020): Libra – A Differentiated View on Facebook’s Virtual Currency Project, Intereconomics, 2020(1), 54–61.  Google Scholar
  65. Brunnermeier, M./James, H./Landau, J. (2019a): Digital Currency Areas, available at: https://voxeu.org/article/digital-currency-areas.  Google Scholar
  66. Brunnermeier, M./James, H./Landau, J. (2019b): The Digitalization of Money, Working Paper, Princeton University, August 2019, available at: https://scholar.princeton.edu/markus/publications/digitalization-money.  Google Scholar
  67. Bullmann, D./Klemm, J./Pinna, A. (2019): In search for stability in crypto-assets: are stablecoins the solution?, ECB Occasional Paper Series, No 230, August 2019, available at: https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op230~d57946be3b.en.pdf.  Google Scholar
  68. Caballero, R./Farhi, E./Gourinchas, P.-O. (2017): The Safe Assets Shortage Conundrum, Journal of Economic Perspectives, Vol. 31, 29–46.  Google Scholar
  69. Catalini, C. et al. (2019): The Libra Reserve, Calibra staff paper, August 14th, 2019, available at: https://libra.org/en-US/wp-content/uploads/sites/23/2019/06/TheLibraReserve_en_US.pdf.  Google Scholar
  70. Claeys, G./Demertzis, M. (2019): The Next Generation of Digital Currencies: In Search of Stability, The Future of Money, European Parliament, Econ Committee Monetary Dialogue, December 2019, 83–101.  Google Scholar
  71. Copeland, R. (2019): A Global Stablecoin – Revolutionary Reserve Asset or Reinventing the Wheel? Journal of Payments Strategy&Systems, Vol. 13 (2019), 310–321.  Google Scholar
  72. Demary, M./Demary, V. (2019): Kryptowährungen – alles anders mit Libra? ifo Schnelldienst, Vol 72(17), 2019, 17–19.  Google Scholar
  73. ECB Crypto-Assets Task Force (2019): Crypto-Assets: Implications for financial stability, monetary policy, and payments and market infrastructures, ECB Occasional Paper Series, No 223, May 2019, available at: https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op223~3ce14e986c.en.pdf.  Google Scholar
  74. European Central Bank (2019): Stablecoins – No Coins, but Are They Stable? In Focus, Vol. 3(2019), November 2019, available at: https://www.ecb.europa.eu/paym/intro/publications/pdf/ecb.mipinfocus191128.en.pdf.  Google Scholar
  75. European Securities and Markets Authority (2019): ESMA Report on Trends, Risks and Vulnerabilities, September 10th, 2019, Report No 2, 2019, available at: https://www.esma.europa.eu/sites/default/files/library/esma_50-165-883_report_on_trends_risks_and_vulnerabilities_no.2_2019.pdf.  Google Scholar
  76. European Securities and Markets Authority (2020): ESMA Report on Trends, Risks and Vulnerabilities, February 19th, 2020, Report No 1, 2020, URL: https://www.esma.europa.eu/sites/default/files/library/esma_50-165-1040_trv_no.1_2020.pdf.  Google Scholar
  77. Financial Times (2019): Carney Keeping ‘Open Mind’ to Facebook Backed Digital Currency, June 18th, 2019, available at: https://www.ft.com/content/189c1c66-91dd-11e9-aea1-2b1d33ac3271.  Google Scholar
  78. French Ministry of Economy/German Ministry of Finance (2019): Joint Statement on Libra, September 13th, 2019, available at: https://www.bundesfinanzministerium.de/Content/EN/Standardartikel/Topics/Financial_markets/Articles/2019-09-17-Libra.html.  Google Scholar
  79. G7 France (2019a): Update from the Chair of the G7 working group on stablecoins, G7 Finance Ministers and Central Bank Governors Meeting, 17–18 July 2019, available at: https://www.bis.org/cpmi/speeches/sp190718.htm.  Google Scholar
  80. G7 France (2019b): Chair’s Summary: G7 Finance Ministers and Central Bank Governors’ Meeting, Chantilly, 17–18 July 2019, available at: https://www.banque-france.fr/sites/default/files/media/2019/08/02/g7_chairs_summary_vff_en.pdf.  Google Scholar
  81. G7 France (2019c): Chair’s Statement on Stablecoins, Washington, October 17th, 2019, available at: https://www.mof.go.jp/english/international_policy/convention/g7/g7_20191017_01.pdf.  Google Scholar
  82. G7 Working Group on Stablecoins (2019): Investigating the Impact of Global Stablecoins, October 2019, available at: https://www.bis.org/cpmi/publ/d187.pdf.  Google Scholar
  83. Giudici, P./Leach, T./Pagnottoni, P. (2020): Libra or Librae? Basket-based Stablecoins to Mitigate Foreign Exchange Volatility Spillovers, DEM Working Paper Series, No 183 (02-2020), available at: http://economiaweb.unipv.it/wp-content/uploads/2018/01/DEMWP0183.pdf.  Google Scholar
  84. Groß, J./Herz, B./Schiller, J. (2019): Libra – Konzept und wirtschaftspolitische Implikationen, Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik, 2019(9), 625–631.  Google Scholar
  85. Gross, M./Siebenbrunner, C. (2019): Money Creation in Fiat and Digital Currency Systems, IMF Working Paper, WP/19/285, available at: https://www.imf.org/en/Publications/WP/Issues/2019/12/20/Money-Creation-in-Fiat-and-Digital-Currency-Systems-48843.  Google Scholar
  86. Handelsblatt (2019): Warnung vor Libra – Wie gefährlich ist Facebooks Kryptowährung? June 27th, 2019, available at: https://www.handelsblatt.com/finanzen/banken-versicherungen/experten-in-alarmbereitschaft-warnruf-vor-libra-wie-gefaehrlich-ist-facebooks-kryptowaehrung/24496570.html?ticket=ST-6011400-71YWPwZMaD5Fh5x9AXC4-ap3.  Google Scholar
  87. Mancini-Griffoli, T. et al. (2018): Casting Light on Central Bank Digital Curreny, IMF Staff Discussion Note, November 2018, available at: https://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2018/11/13/Casting-Light-on-Central-Bank-Digital-Currencies-46233.  Google Scholar
  88. Marthinsen, J./Gordon, S. (2019): A Theory of Optimum Cryptocurrency Scope, Economics of Innovation and New Technology, 2019, available at: https://www.tandfonline.com/doi/full/10.1080/10438599.2019.1687395.  Google Scholar
  89. Ocampo, J. (2019): Is It Time for a “True Global Currency”? April 8th, 2019, available at: https://www.weforum.org/agenda/2019/04/is-it-time-for-a-true-global-currency/.  Google Scholar
  90. Schmeling, M. (2019): What is Libra? Understanding Facebook’s Currency, SAFE Policy Letter, No. 76, September 2019, available at: https://safe-frankfurt.de/fileadmin/user_upload/editor_common/Policy_Center/SAFE_Policy_Letter_No_76.pdf.  Google Scholar
  91. Skeie, D. (2019): Digital Currency Runs, January 30, 2019, available at SSRN: https://ssrn.com/abstract=3294313.  Google Scholar
  92. Vasudevan, R. (2020): Libra and Facebook’s Money Illusion, Challenge, Vol. 63(1), 21–39.  Google Scholar
  93. Velasco, A./Chang, R. (2019): Will Facebook’s Libra Turn into a Cancer? Project Syndicate, July 16th, 2019, available at: https://www.project-syndicate.org/commentary/facebook-libra-becomes-cancer-by-andres-velasco-and-roberto-chang-2019-07?barrier=accesspaylog.  Google Scholar
  94. Xie, S. (2019): More Than a Third of China is Now Invested in One Giant Mutual Fund, The Wall Street Journal, March 27th 2019, available at: https://www.wsj.com/articles/more-than-a-third-of-china-is-now-invested-in-one-giant-mutual-fund-11553682785.  Google Scholar
  95. Zetzsche, D./Buckley, R./Arner, D. (2019): Regulating Libra: The Transformative Potential of Facebook’s Cryptocurrency and Possible Regulatory Responses, University of New South Wales Law Research Series, 2019/042, available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3414401.  Google Scholar
  96. Zetzsche, D./Buckley, R./Arner, D./Barberis, J. (2017): From FinTech to TechFin: The Regulatory Challenges of Data-Driven Finance, European Banking Institute, 6/2018, available at https://orbilu.uni.lu/bitstream/10993/38944/1/SSRN-id2959925.pdf.  Google Scholar
  97. Zhang, L./Chen, S. (2019): China’s Digital Economy: Opportunities and Risks, IMF Working Paper, Vol 16/2019, available at: https://www.imf.org/~/media/Files/Publications/WP/2019/wp1916.ashx.  Google Scholar
  98. International Monetary Fund (2018a): Stablecoins, Central Bank Digital Currencies, and Cross-Border Payments: A New Look at the International Monetary System, Remarks by Tobias Adrian at the IMF-Swiss National Bank Conference, Zurich, May 2019, available at: https://www.imf.org/en/News/Articles/2019/05/13/sp051419-stablecoins-central-bank-digital-currencies-and-cross-border-payments.  Google Scholar
  99. Sandner, P. (2019): Facebook Coin: What would be the market capitalization of Libra? Would Libra be rated higher than Bitcoin? June 22nd, 2019, available at: https://medium.com/@philippsandner/facebook-coin-what-would-be-the-market-capitalization-of-libra-125f58645729.  Google Scholar
  100. International Monetary Fund (2018b): Considerations on the role of the SDR, IMF Policy Paper, April 2019, available at: https://www.imf.org/en/Publications/Policy-Papers/Issues/2018/04/11/pp030618consideration-of-the-role-the-sdr.  Google Scholar

Abstract

Global stablecoins (GSCs) like Facebook’s Libra could prove much more instable than they might appear at first sight. Not only can their exchange rates against individual fiat currencies fluctuate substantially; theoretically, they also have the potential to replace national currencies, constitute “digital currency areas” and become the basis of a two-tier banking system with one and more GSC issuers, on the one hand, and, on the other hand, commercial banks that can create GSC deposit money. Against that background, all steps taken so far by supervisors and central banks can only be the starting point of what is necessary to effectively regulate the new normal of the world of money that is emerging.

Table of Contents

Section Title Page Action Price
Stefan Schäfer / Oliver Read: Financial and Monetary Stability Aspects of Global Stablecoins 1
Abstract 1
I. Introduction 1
II. Facebook’s Libra as a Catalyst for the Academic and Regulatory Engagement in Stablecoins 3
III. The Macroeconomics of Global Stablecoins: a Brief Survey of the Literature 6
IV. How Stable Can a Global Stablecoin Be as a “Currency”? Some Basic Considerations 1
1. Determining Changes in the GSC Exchange Rate 1
2. How Optimal is “GSC Land” as a Currency Area? 1
3. Will Central Banks or the GSC Issuer Pursue Exchange Rate Policies? 1
V. Money Creation in a GSC Environment: Future Turbulences in the Making? 1
VI. Concluding Remarks 2
References 2

Contact

Duncker & Humblot GmbH Carl-Heinrich-Becker-Weg 9 12165 Berlin, Deutschland T: +49 30 790006-0

Quick Navigation

2024 Duncker & Humblot GmbH

Powered by CloudPublish

We use cookies to ensure that you get the best experience on our website. Learn more about how we use cookies.