Stablecoins could allow for ‘embedded supervision’ – BIS paper
But authors say CBDCs may be a more effective means of achieving the same goal
One potential upside of allowing a global stablecoin such as libra to operate is that supervision could be “embedded” within the system, according to a working paper from the Bank for International Settlements.
Douglas Arner, Raphael Auer and Jon Frost explore the “risks, potential and regulation” of different stablecoins. They suggest authorities could demand “direct, automated provision of data” as a licensing condition for new stablecoin systems.
To some extent this is already happening
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