EBA study calls for stablecoin reserves transparency
Authors say suspensions of withdrawals can prevent bankruptcy
Researchers at the European Banking Association (EBA) believe the best approach to regulating stablecoins, and thereby mitigating the impact of shocks and runs, depends on greater disclosure by issuers.
In a paper published on August 26, Olli Castren and Riccardo Russo point out that “issuers are incentivised to hold disproportionate amounts of high-yielding but illiquid assets in their reserve portfolios”.
The researchers build on previous studies, which found that transparency could either
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