Facebook’s libra could disrupt collateral markets – IMF paper
Collateral used to back ‘stablecoins’ such as libra will be unavailable for reuse
Plans by Facebook and other private companies to issue so-called stablecoins backed by government securities could disrupt the supply of collateral to financial markets, says a new working paper from the International Monetary Fund.
In the IMF working paper, called Privacy provision, payment latency and role of collateral, authors Charles Kahn, Caitlin Long and Manmohan Singh argue that digital currencies are analogous to collateral reuse, where securities are exchanged for cash. Looked at
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