For example, Libra is an integrated construct that simultaneously encompasses a new settlement asset, a new payment rail and new end-user solutions. Global stablecoins could drive further innovation in payments, responding to the need for cross-border payments and remittances that are more efficient and cheaper.
Indeed, the Financial Stability Board has proposed a roadmap to enhance cross-border payments that recognises a role for sound global stablecoin arrangements. [4] The flip side of stablecoins is the host of risks they can pose to our social and economic life.