Where Are We on Stablecoins?

The panel explores the growth, potential, and regulatory environment of stablecoins, focusing on their role in global finance and digital economies. The discussion highlights stablecoins' increasing use in cross-border transactions, trade finance, and as a hedge against inflation, particularly in Africa where they address high remittance costs and limited access to traditional banking. Panelists debate the impact of stablecoins on monetary policy, with arguments for both a potentially smaller monetary base due to increased money velocity and concerns about disintermediating the banking system. The conversation also covers the programmability of stablecoins and their importance in facilitating transactions between AI agents, emphasizing the need for clear regulatory frameworks to balance innovation with financial stability.