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Stablecoins as a new form of digital money: Emission, circulation, regulation and risk management
https://doi.org/10.32609/0042-8736-2022-6-42-68
Abstract
Stablecoins as a new form of digital money, in contrast to the traditional forms of money prevailing today, maintain their stability by being tied to basic reserves (national currencies, goods or digital assets). Basically, they circulate in developed countries (primarily in the USA, EU countries or financial centers of Asia) in order to carry out exchange transactions with digital currencies or increase trade turnover and lending volumes. Over the time, they can become not only a reliable and inclusive means of payment, which will be actively used in transactions both nationally and internationally, but also widely used as a store of value. However, the integration of stablecoins with a modern monetary and payment system can only happen if there is a proper and coordinated regulation of all monetary authorities. Based on the analysis of the economic nature, the current standards and models for regulating the emission and circulation of stablecoins, as well as the existing international practice of managing their risks, it has been concluded that it is necessary to abandon the prohibitive approach to the use of this form of digital money. Instead of banning the use of stablecoins as a means of payment and savings, the Bank of Russia should justify and propose acceptable models for regulating the issue and circulation of stablecoins. Such models should provide for clear back-up mechanisms for the issue of stablecoins and requirements for their issuers to minimize the risks of both holders and issuers of stablecoins.
Keywords
Bank of Russia,
central banks,
commercial banks,
distributed ledgers,
stablecoins,
digital currencies,
electronic money
JEL: E42, E58, F29, G15
About the Authors
S. A. Andryushin
Institute of Economics, RAS
Russian Federation
Russian Federation
Sergey A. Andryushin
Moscow
D. A. Kochergin
St Petersburg State University
Russian Federation
Russian Federation
Dmitry A. Kochergin
St. Petersburg
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For citations:
Andryushin S.A., Kochergin D.A. Stablecoins as a new form of digital money: Emission, circulation, regulation and risk management. Voprosy Ekonomiki. 2022;(6):42-68. (In Russ.) https://doi.org/10.32609/0042-8736-2022-6-42-68
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