If widely-used stablecoins were not managed properly and consumers could not fully convert their holdings to the underlying currency – for example if the assets in which stablecoin issuers invested in were illiquid – this could also have financial stability implications.
Addressing capital shortfalls I would now like to turn to the issue of how to deal with any capital shortfalls identified in the comprehensive assessment. It is clear that, first and foremost, banks will need to fill potential capital gaps via marketbased solutions.