The scale of usage and domestic and international impact of crypto-assets varies across jurisdictions, but there has indisputably been a rapid growth in adoption. As this trend continues, even amid high volatility, various international financial governing bodies have highlighted the emerging risk to global financial stability, with potential macroeconomic impacts. There is a need for a timely and precautionary evaluation of the possible macroeconomic effects of cryptocurrencies and stablecoins and corresponding policy responses.
In the absence of high-certainty macroeconomic models that project the impact of cryptocurrency and stablecoins, this white paper seeks to forecast the potential effects based on qualitative assessments from global macroeconomists and credible literature in this space.
The Digital Currency Governance Consortium (DCGC) community – comprising a global, multi-sector set of more than 85 leading organizations – continues to discuss the potential solutions and regulatory paths for the future to enable the continued encouragement of the responsible roll-out and adoption of digital currencies. We will be publishing the DCGC’s second phase of work in two releases:
1. The macroeconomic impact of cryptocurrency and stablecoins
2. Regulatory best practices for cryptocurrency and stablecoins (to be published later this year)
Understanding the macroeconomic impact of cryptocurrency and stablecoin economics
The World Economic Forum’s Digital Currency Governance Consortium has published a comprehensive analysis of the macroeconomic impact of cryptocurrency and stablecoins.
5 key points from the Financial Stability Board’s review of crypto assets
On 11 October, the Financial Stability Board (FSB) released its recommendations to strengthen international regulation of crypto assets and so-called global stablecoin (GSC) arrangements....
Cryptocurrency regulation is changing. Here's what you need to know
The emergence of crypto assets, such as cryptocurrencies, is seen by many as part of a broader trend toward more diverse financial market infrastructures that both enhance choice and offe...