Stablecoins, Cryptocurrencies, and Blockchain

Abstract

Test 1Just a year ago, the talk was all about cryptoassets: Bitcoins and its multiple evolutions.We have moved on, since then.Now, we must reckon with eMoney, a new form of digital currency with the potential to be much more disruptive.Today, I will define eMoney, then discuss its implications in a closed-economy setting.I will suggest that its adoption may be extremely rapid -but that it may raise significant risks.Policies to counter these risks -as in a sleight-of-hand magic trick, you will see -yield a synthetic version of central bank digital currency (CBDC) with various advantages relative to the full-service version just discussed, and studied in a recent IMF publication.