Stablecoins: Popularized by Facebook, Pilloried by Regulators

Facebook Inc.’s Libra initiative has thrust the stablecoin -- digital currency pegged to the value of low-volatility alternatives like the dollar -- into the spotlight. Gregory Klumov, founder and chief executive officer of Stasis, the company behind EURS, a stablecoin pegged to the euro, discusses the issues surrounding the growing visibility of these relatively stable digital assets.

Some regulators have taken a hostile approach to stablecoins because they feel certain structures threaten their national interests and ability to conduct monetary policy. However, stablecoins backed by a single currency, like EURS, do exactly the opposite. It in fact promotes the national currency beyond its borders, which is what every nation wants.