BT Explains: What are stablecoins and CBDCs?

STABLECOINS have been on a tear of late, with growing global acceptance of cryptocurrencies driving their rise. They have also caught the attention of lawmakers around the world, who are urging regulatory frameworks for this broad class of digital currencies.

At the start of 2021, the total global supply of stablecoins was worth about US$29 billion, according to data from The Block, which publishes research in the digital asset space. This figure has risen to US$128 billion within 10 months, as at October 20.

At the Asia Financial Markets Forum last week, the chairman of Singapore's central bank Tharman Shanmugaratnam said "there may be a role for crypto in future finance that extends beyond pure speculation and illicit finance". (see clarification note)