Bank of Canada (Canada central bank) Governor: Stablecoins (price-pegged cryptocurrency) Need High-Quality Liquid Backing

According to the Bank of Canada (Canada central bank) governor, stablecoins (price-pegged cryptocurrency) should be backed by high-quality liquid assets.

Summary

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Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency or commodity through reserves.
  • High-quality liquid assets (HQLA): Cash and easily sellable securities that can be quickly converted to meet short-term obligations under banking standards.