Central banks are tuning into stablecoin risks

The spectacular demise of the TerraUSD stablecoin along with Luna has opened a window for stablecoin regulation. It appears as though central banks are coming.A plan released from the Bank of England yesterday said collapsed stablecoin issuers would be put into special administration under BOE control, similar to banks.A Bloomberg column today urges more regulation.Today the Fed’s Williams is edging into the same debate.Digital revolution in payments and money  could have implications for central bankingRole of central banks will remain to supply liquidity and stability but digital currencies could change implementationIt’s ‘critical’ the Fed understand how digital technologies influence the financial system and policy implementation