Stablecoins: Policy, sovereignty and backstops

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No jurisdiction can ignore stablecoins. They can be banned outright only in the most effectively authoritarian countries, or accommodated and even encouraged, which suits the United States and hub countries. For most countries, benign neglect is the best course of action. But countries where monetary sovereignty is already under threat are more vulnerable to stablecoin-linked risks.

Published on the SUERF website.