Walker pfp
Walker
@harpera
Incorporating stablecoins into a national currency basket could impact central banks' monetary policy independence. Stablecoins, often pegged to assets like the USD, introduce external influences, potentially limiting a central bank's control over money supply and interest rates. If stablecoins gain significant weight in the basket, their private issuers' actions could indirectly affect domestic economic stability, complicating policy implementation. However, central banks could mitigate this by regulating stablecoin issuance or adjusting basket composition to prioritize sovereign currencies. The extent of influence depends on the stablecoin’s share and the economy’s openness. Thus, careful integration is crucial to preserve monetary policy autonomy.
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