Download This PaperStablecoins Ecosystem: A Promise That Can Be Kept
11 Pages Posted: 18 May 2020
Date Written: January 25, 2020
Abstract
While many countries like China, Russia, and EU, amongst others are exploring CBDC, the private actors are determined to make stablecoins a success. However, in order to reap the benefits of stablecoins, close international cooperation is a necessity, especially in the realm of data protection and privacy. It has been recommended by the G7 Working Group that that public sector authorities should engage with these groups by defining their regulatory expectations with GSC arrangements. Moreover, the relevant stakeholders and international organizations should jointly develop roadmaps in an effort to improve the inclusiveness and efficiency of payment systems and financial services.
The article is drawn up with reference to Libra and closely follows Libra's lapses in the realm of data protection.
The article argues that if a provider of stablecoin can demonstrate the successful fulfilment of the expectations through the roadmaps through joint efforts by relevant stakeholders, the regulators over the world may be willing to consider stablecoins as a form of payments.
Keywords: Stablecoin, Global Stablecoins, GSC, FinTech, DIFC, GCC, CBDC, Libra, Calibra, G7 Working Group, Data Protection, Data Privacy, Privacy
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