[23] Although coined as being “stable”, the market valuations of stablecoins in fact fluctuate quite significantly. Also some stablecoins are not fully audited, and they disclose their reserves on a voluntary basis only. Hence, the existence and composition of reserves cannot always be verified.
As these entities might be a source of systemic risk we have to deal with them in terms of regulation. This issue has already been discussed at the G20 summit in St. Petersburg in August. Progress has been made and shadow banking will remain high on the reform agenda. The same is true of the “too big to fail” problem.