Facebook’s announcement of Libra in June 2019 has prompted the G7 to issue a report on the risks of global stablecoins. While the report acknowledged deficiencies in current cross-border payment systems, it highlighted that stablecoins had to operate in a sound legal and regulatory framework. In April 2020, an updated Libra whitepaper was published that addressed some of these concerns. Nevertheless, many questions still remain open and further work is needed to better understand the implications of Libra for monetary policy and financial stability. The presentation will discuss the potential impact of widely adopted global stablecoins on monetary policy transmission, bank intermediation and financial stability.
Katrin Assenmacher, Head of the Monetary Policy Strategy Division at the European Central Bank (ECB)
Dirk Niepelt, Director of the Study Center Gerzensee; Professor at the University of Bern