Importantly, if a stablecoin is backed by short-term securities, the stablecoin provider must take the funds received in return for the issuance of stablecoins and purchase short-term securities for the stablecoin “anchor” pool. The seller of those securities will then take the funds received and put them back into the banking system.
Return to text 11 Private-sector stablecoins are also subject to cyber risk, of course, but any individual private stablecoin network  would be less systemic than a CBDC for an entire advanced economy, and private companies are frequently better able to make the rapid and constant investment in technology required to keep current with technological security threats.