report October 18, 2021 Stability and inclusivity of stablecoins: A conversation with Circle CEO Jeremy Allaire While cryptocurrency has been around for over a decade, it has only gained mainstream popularity recently. Crypto backers see the technology as the way of the future, but its instability leaves others skeptical. As a less volatile alternative to traditional cryptocurrencies, asset-backed stablecoins have joined the market. But as with all new technology, important questions must be resolved before... By Brookings Institute, Financial Institutions Brookings Institute
report October 18, 2021 The US needs urgently to raise its macropru game Donald Kohn Robert V. Roosa Chair in International Economics Senior Fellow - Economic Studies Implementing robust macroprudential policy—addressing threats to financial stability beyond those that were the focus of safety and soundness on an institution-by-institution basis or of investor protection market-by-market—was a constructive outcome of the legislative and policy response to the global financial crisis of 2008-09. In the U.S., the Dodd-Frank Act... By Brookings Institute, Financial Regulation Brookings Institute
report October 5, 2021 Regulating stablecoins isn’t just about avoiding systemic risk It’s good news that financial regulators are focused on figuring out what to do about stablecoins because their growth is creating significant risks. But there’s a bigger picture here than how to bring these new instruments within the regulatory perimeter, or how to regulate crypto generally, even though these are important. The bigger issue is how do we modernize... By Brookings Institute, Financial Regulation Brookings Institute
report September 28, 2021 The risks of US-EU divergence on corporate sustainability disclosure Sustainability disclosure is in vogue, with more than 80 percent of major global companies reporting on some aspects of their social and environmental impacts. This is partly driven by growing calls for transparency by civil society organizations and environmental, social, and governance (ESG) investors, who are demanding detailed and verified corporate sustainability information. ESG investments—assets that fulfill certain minimum... By Brookings Institute, Post Brookings Institute
report September 24, 2021 Can fintech improve health? Abstract Access to electronic financial services, in particular digital money, has replaced the digital divide as an unintended yet significant barrier for low-income individuals to participate in new technologies, including those that lead to better health outcomes. This paper explores this problem in depth. It begins by describing and documenting the barriers, costs, and benefits to accessing and using digital... By Brookings Institute, Financial Regulation Brookings Institute
report September 9, 2021 Financial technology: A hidden path to a healthier outcome? New financial technology (fintech) is transforming how people use money. Money, whether by its presence or absence, has an impact on health. What are, then, the health consequences flowing from fintech? The answer is even more important if access to fintech becomes a hidden gatekeeper in the ability to access new non-financial technology that can lead to better health... By Brookings Institute, Technology & Innovation Brookings Institute
report August 27, 2021 Building a more stable financial system: Unfinished business Twice in this still-young century central banks have had to take steps, unprecedented in size and scope, to limit the economic fallout from financial instability. While we can’t expect a financial system to withstand an overnight shut down of the global economy like we experienced in March 2020 without support from central banks and fiscal authorities, the financial market... By Brookings Institute, Financial Regulation Brookings Institute
report August 26, 2021 The future of money: The end of cash and the rise of digital currencies Are we heading for a cashless future? Eswar Prasad, a senior fellow at Brookings and author of the forthcoming book, “The Future of Money: How the Digital Revolution Is Transforming Currencies and Finance,” thinks so. Credit card and cell phone payments have disrupted the physical cash market already, but Prasad says the real driving force will be central banks—as... By Brookings Institute, Financial Regulation Brookings Institute
report August 17, 2021 Where are the Biden financial regulators? Seven months into the Biden administration and despite rising attention to a host of diverse issues in financial regulation and monetary policy—notably concerns about inflation, central bank digital currencies, retail investing, stablecoins—the president has shown little appetite for filling pending vacancies in the financial regulatory agencies beyond the occasional (and often inconsistent) trial balloon. This is an old problem: Joe... By Brookings Institute, Financial Regulation Brookings Institute
report August 3, 2021 What is swing pricing? The problem In March 2020, at the start of the COVID-19 pandemic in the U.S., investors pulled more than $100 billion out of corporate investment-grade and high-yield bond mutual funds, forcing funds to sell some of their holdings. The spread between corporate bond yields and U.S. Treasuries (a market that had its own dysfunction) widened, transaction costs rose, and issuance... By Brookings Institute, Financial Institutions Brookings Institute
