SEACEN Online Seminar: Stablecoins & Financial Stability

Venue :Online Seminars
Host Name :The SEACEN Centre
Date From :22 Mar 2022
Date To :22 Mar 2022

Descriptions


Stablecoins, if within the regulatory perimeter, may be a fitting proxy to CBDCs. We argue that the crucial difference between central bank reserves and safe collateral such as US Treasuries is not their safety (both are safe) but their liquidity. In a T0 (instantaneous payment/settlement) world, stablecoins should be backed by central bank reserves and not collateral such as US Treasuries or Bunds or JGBs. And to have a sizable impact on monetary/macro policy, stablecoins needs to be interoperable, cross-border. 
 

About the speaker:

Manmohan Singh is a senior economist with the IMF. He writes extensively on topical issues including collateral velocity  (a term he coined), monetary policy and collateral, why some EM collateral should be part of global plumbing, and (recently) stablecoins and access to central bank reserves. His new book, Collateral Markets and Financial Plumbing, looks at all the above topics from the lens of financial collateral. Manmohan has led work-shops for the IMF to official sector policy makers on the impact of regulations on financial markets. He holds a Ph.D. and M.B.A. from University of Illinois at Urbana-Champaign and a B.S. from Allegheny College. His recent articles are available at  https://sites.google.com/view/msinghdc/home