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Opinion
Jon Cunliffe and Ashley Alder

The Need for Global Stablecoin Standards

A look at the newly released guidelines from international regulators.

BRITAIN-US-BLOCKCHAIN-CRYPTOCURRENCY-STABLECOINS-USDT-TETHER
Photographer: JUSTIN TALLIS/AFP

Money has taken different forms throughout history. However, one basic rule remains constant through technological and economic change. If something is accepted and used as a means of exchange, then there must be trust in the money itself and the institution behind it to provide a guarantee of its value. Users must have the confidence it will continue to be accepted as money.

History has demonstrated time and again that when that confidence is broken, and users no longer trust the stability of money, the inevitable consequence is a costly, destabilizing and often immediate run.