Stablecoins and Central Bank Digital Currencies: Policy and Regulatory Challenges

Abstract Stablecoins and central bank digital currencies are on the horizon in Asia, some cases have already arrived. This paper provides new analysis a critique of use case for both forms currency. It time-varying estimates devaluation risk leading stablecoin, Tether, using data from futures market. describes formidable obstacles to widespread cross-border transactions, context which their utility is arguably greatest. The bottom line that significant uncertainties continue dog region's currency initiatives.