The emergence of new shadow sectors in the financial system through stablecoins must be prevented. This is what the G7 finance ministers and central bank governors have called for at their meeting in Chantilly, just outside of Paris.
BIS: Monetary policy cannot be engine of economic growth
In its Annual Economic Report, the Bank for International Settlements calls for structural reforms, fiscal policy and macroprudential measures to play a greater role in ensuring sustainable growth. The report states that “monetary policy cannot be the engine of economic growth”.
Wuermeling: "Facebook will become a major government creditor"
Bundesbank Executive Board member Joachim Wuermeling has called for global rules governing digital crypto tokens in an interview with the Sunday newspaper “Frankfurter Allgemeine Sonntagszeitung”. This was prompted by plans announced by Facebook to launch its own digital currency, which will be backed by assets such as short-term Bunds and US Treasuries.
Writing in a joint op-ed piece, Sabine Mauderer, Bundesbank Executive Board member, and Sylvie Goulard, Second Deputy Governor of the Banque de France, point out that global warming is a source of significant financial risk and can jeopardise the stability of the entire financial system. This, they explain, is why central banks have been looking more closely at the impact of climate change.