The European Central Bank (ECB) has published a paper regarding the regulatory and financial stability perspective on Global Stablecoins (GSCs).
The ECB, before assessing pros and cons thereof, stressed that Stablecoins aim at reducing crypto-assets’ price volatility and stablecoin arrangement features three key functions:
– payments (transfer functionality);
– asset management (investing the proceeds from the issuance of stablecoins in safe low-volatility assets);
– user interface.