Abstract 

Digital currencies have the potential to improve the speed and efficiency of payments and to broaden financial inclusion. The principal goal is to facilitate payments among consumers on a day-to-day basis as an alternative to cash, both domestically and across national borders. This Article begins by critically examining and critiquing the ongoing progress to try to develop retail digital currencies, focusing on the two most feasible approaches: central bank digital currencies (“CBDC”), and privately issued currencies that are backed by assets having intrinsic value (“stablecoins”). The Article then analyzes how these digital currencies should be regulated and supervised, exploring their similarities and differences. Both CBDC and stablecoins raise innovative legal issues as well as the types of legal issues normally associated with money and payment systems, although in novel contexts. If widely used, stablecoins also could impair central banks’ ability to control monetary policy and possibly undermine confidence in the value or operational continuity of currencies, which could threaten international monetary and financial stability. Stablecoin regulation must also address those potential threats.

Link to the paper.

Practicalities

This event will be a hybrid event. The seminar will take place in Roeterseiland campus (REC) building A, room number A3.01 (Research Seminar Room), and will also be streamed online via Zoom.  

About the speaker 

Steven L. Schwarcz is a chaired distinguished professor of law & business at Duke University and has been a partner at two of the world’s leading law firms. He also has served as a distinguished visiting professor at Oxford and other top universities and has been a senior advisor to, or is a fellow of, numerous international organizations of thought-leading experts in law, finance, and insolvency. 

About ACLE

The Amsterdam Center for Law and Economics (ACLE) is a joint initiative of the Faculty of Economics and Business and the Faculty of Law at the University of Amsterdam. The objective of the ACLE is to promote high-quality interdisciplinary research at the intersection between law and economics.