A stablecoin could serve as an attractive payment instrument if it is pegged one-to-one to the dollar and is backed by a safe and liquid pool of assets.15 If one or more stablecoin arrangements can develop a significant user base, they could become a major challenger to banks for processing payments.
A major step in this direction has been the establishment of the Single Resolution Fund in 2016, with national compartments and a mutualised compartment available to fund capital and liquidity needs. Currently, the backstop for national compartments consists of national credit lines.