Presentations
Cryptocurrency, Stablecoins, and CBDCs

21St Parliamentary Intelligence-Security Forum – Cryptocurrency, Stablecoins, and CBDCs

Jessica Renier

Managing Director, Digital Finance at the Institute of International Finance; former Senior Counselor, U.S. Department of Treasury

March 8, 2022

Guatemala City, Guatemala

Ms. Jessica Renier presented a framework for comprehending digital assets, categorizing them into three distinct groups: cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs). Cryptocurrencies such as Bitcoin and Ether exhibit high levels of speculation and volatility, presenting potential gains but substantial risks for both individuals and governments, as their value is not influenced by macroeconomic fundamentals. Stablecoins are theoretically pegged to assets like the US dollar and depend on proper regulation and reserves to maintain stability. CBDCs are digital representations of sovereign currency issued by central banks, integrating with macroeconomic policies and facilitating secure, interoperable global payments, although their designs vary across countries. Ms. Renier emphasized that digital asset activity persists irrespective of regulation, necessitating frameworks to prevent illicit utilization, account for volatility, and ensure economic stability, while distinguishing between unbacked cryptocurrencies, stablecoins, and CBDCs.

Share