Central banks could lose the ability to adjust monetary policy should stablecoins, such as Libra, become popular methods of payment, according to new research from Sveriges Riksbank.

“A successful penetration” by a multinational digital currency would pose a fundamental challenge to the Swedish monetary system, a report from Sweden’s central bank says.

In June 2019, Facebook announced plans to launch its own crypto-asset – Libra – with its value linked to a basket of currencies. Were Libra to