Policy Brief No. 168 — September 2021 - Designing and Regulating Retail Digital Currencies

The digital yuan being developed by would it mean for an account-based retail CBDC the PBOC appears to combine account-based and to be regulated similarly to the regulation of token-based features. [...] For example, would expose the issuer and stablecoin holders the EFTA limits consumer liability for unauthorized to default risk, similar to the liquidity “run” risk transactions and ensures that banks adequately of a bank run — that the issuer might be unable inform consumers of their rights (and protects to obtain sufficient reference assets to satisfy consumers from being forced to waive those r. [...] The latter would help stablecoin issuer to satisfy such redemption rights, to protect against the risk that a stablecoin could or even the perception that such a failure might become so widely used that it would undermine occur, would likely lead to a loss of confidence the ability of the government to use its currency to in the stablecoin and a collapse in its value. [...] Their central regulatory challenges are to minimize the high cost of Currency Payments coordinating and complying with the national laws of different jurisdictions and to control the risk that cross-border digital currency payments pose Designing Cross-Border Digital to international monetary and financial stability. [...] Such a supervisory body might be law could help to minimize the high cost of modelled, for example, on the Financial Action Task coordinating and complying with the national Force, the inter-governmental body that produces laws of different jurisdictions, as well as to control best-practice recommendations for combatting the risk that cross-border stablecoin payments money laundering and terrorist.