Matolcsy: Innovation or/and regulation?

Both are badly needed at the same time, so the answer is not either/or, the straightforward answer is both /Brendan Greely, FT, Opinion On Wall Street, 2/16/22/.

When it comes to stablecoins, if someone creates a financial liability that is liquid like money, it is inherently runnable. It means financial stability risks for creators of crypto-currencies, for banking sectors, for consumers, finally for governments and central banks. Regarding stablecoin, since January of 2020, the total supply of dollar stablecoins has grown from 6 billion dollars to 174 billion dollars.

The breathtaking pace of financial innovation needs quick enough new financial regulations. We must treat stablecoin providers like deposit banks because they are really deposit banks, as it was rightly put by Greely.

This is true for all financial innovations in all members of the global financial world.

Governor Matolcsy, MNB, the Central Bank of Hungary

Re “Stablecoin firms should be regulated like the banks they are”