29th Parliamentary-Intelligence Security Forum – The Geopolitical Impact of Crypto and Digital Currencies
Dr. Oonagh McDonald addressed the development and risks of stablecoins, recalling the failed Libra initiative led by Mark Zuckerberg, which sought to improve remittances but ultimately faltered amid regulatory and trust concerns. She argued that advances in regulated banking systems and wider access to basic bank accounts have reduced the need for private stablecoins, particularly for low-income users seeking safe and affordable transfers.
She highlighted the continued dominance of Tether in the global stablecoin market, raising concerns about transparency, reserve backing, and the adequacy of regulatory oversight. While Tether reports holding U.S. Treasury reserves and operating under El Salvador’s framework, Dr. McDonald questioned the depth of its audits and supervision.
Emphasizing risks such as illicit transactions enabled by blockchain anonymity, she stressed the enforcement of international standards like the Financial Action Task Force “travel rule” to ensure transaction transparency. She concluded that strong regulation, clear oversight, and accessible traditional banking services remain essential to safeguard consumers and maintain financial stability.
