At the World Economic Forum in Davos, IMF Deputy Managing Director Bo Li highlighted important unresolved issues concerning stablecoin regulation. These issues pertain to their classification and the overall international regulatory approach.
International Regulation of Stablecoins
During his speech, Bo Li emphasized that countries, including the U.S., Europe, and Asia, have made significant progress in developing regulatory frameworks for stablecoins. However, there remains a crucial issue requiring discussion.
Classification Challenges of Stablecoins
Li raised the question of how exactly stablecoins should be classified. Should they be viewed as monetary currencies or as financial assets such as stocks or gold? This question significantly affects the regulation of stablecoins.
Future Regulation and Challenges
Li noted that if stablecoins are classified as currency, this will necessitate determining whether they fall under narrow or broad money classifications, which will impact issues such as anti-money laundering controls and liquidity. He also added that achieving global consensus is necessary for further progress.
Bo Li's remarks highlight the relevance and importance of stablecoin regulation in a rapidly changing financial landscape. These digital assets could play a significant role in the economy, and clear and coordinated rules are essential for their effective use.
