Written evidence for the House of Lords Economic Affairs Committee  inquiry on Central Bank Digital Currencies (2021), with F. Fraschini and T. Terracciano

Stabilizing stablecoins: a pragmatic regulatory approach (2020), with T. Terracciano

We propose a framework for regulating stablecoins as a new asset class. We de- fine stablecoins as those digital currencies which are centrally managed and backed by other assets. We compare stablecoins and ETFs under the principle that similar risks should be treated in a similar fashion (FINMA 2019). Hence, we propose to lock stablecoins into an ETF-like structure, along with restrictions on the basket composition, would significantly reduce regulatory concerns. Stablecoin providers would be functionally similar to ETF sponsors and stablecoins would be a new vehicle for traditional fiat currencies. Finally, we address common macroeconomic concerns in light of our proposed frame- work.

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