Rules to Power a Stablecoin Driven Economy
Digital currencies are shaking up the financial world, with stablecoins and central bank digital currencies (CBDCs) attracting intense focus from governments, central banks, and businesses worldwide. Collaboration and education are crucial in driving the digital currency sector forward. The design, marketing, and policies that encourage trust and innovation will shape the future of money. The strategic roundtable was held at the Elevandi Insights Forum, and saw 20 global leaders and experts in digital currencies – across public and private sectors, regulators, digital currency issuers and exchanges, as well as leading financial institution experts from KPMG. The panel was chaired by Jo Yeo, Head of Payments Development & Data connectivity at MAS.
- Stablecoins, CBDCs, and tokenized deposits can coexist and bring substantial benefits, but regulations, risk management, and industry collaboration need addressing.
- Digital currencies can improve financial inclusion, deliver humanitarian aid, and reduce inefficiencies and costs in remittances and currency devaluations.
- Trust in digital currencies requires a consistent and standardized approach to operations, collaboration with reputable partners, and a focus on cybersecurity and privacy.
- Regulatory frameworks for stablecoins should prioritize consumer protection, anti-money laundering/know-your-customer requirements, and transparent backing from trusted issuers.