Digital Currencies and Stablecoins: Risks, Opportunities, and Challenges Ahead
Author(s): G30 Working Group on Digital Currencies
This report examines the landscape of digital currencies: from Bitcoin and (Facebook’s) Libra to central bank digital currencies, payment systems are evolving rapidly. The G30 report makes clear that decisions by regulators on how to deal with digital currencies, now and over the next few years, could shape the global financial system for decades to come.
The report calls for Central Banks and Finance Ministries to play an active leadership role in setting standards and providing public infrastructure for payments, which cannot be left to market forces alone. The report highlights further issues that policymakers must consider, including the balance that must be struck between the protection of individual data versus the government's imperative to enforce laws, regulations, and taxes. As the technology develops, Central Banks cannot be hands-off and need to play a definitive role.
To read the full press release on the report, please click here.