IMF proposes two options for stable currency regulation

On September 26, the International Monetary Fund (IMF) official website issued a document stating that it is doubtful whether the stable currency is indeed stable. The risks of stabilizing the currency include: the security and liquidity of the underlying assets; whether the stable currency in circulation has sufficient support; if the stable currency supplier goes bankrupt, whether its assets are protected, etc. Regulation must eliminate these risks. The IMF article mentions two options: one option is to require stable currency suppliers to hold safe, liquid assets and a full net worth to protect stable currency holders from losses. In essence, this call will be to regulate stable currency suppliers, even though they are not traditional banks. But the author of the article claims that this is not an easy task. Another option is to require stable currency suppliers to use the safest and most liquid assets – the central bank reserve – to fully support their stable currency.