Erik Thedéen at the Riksdag Committee on Finance: Regulation of stablecoins requires international consensus

In his introduction, Mr Thedéen highlighted the fact that increased global uncertainty and growing vulnerabilities linked, in particular, to high asset valuations and increased public debt in many countries illustrate the importance of good resilience. In times of uncertainty, it is all the more important to safeguard global regulatory frameworks, which strengthen the resilience of the financial system.

One example where a common approach to regulation is needed is stablecoins. The financial risks of stablecoins are currently limited. But stability risks will increase as the market grows. Different regulations in different countries then become a problem, according to Mr Thedéen.

“There is a regulatory framework in place for the issuance of stablecoins in the EU, through the MiCA Regulation. At the same time, the United States has decided to introduce the Genius Act, which in several places differs significantly from MiCA. Such regulatory differences could potentially lead to unequal competition between issuers of stablecoins in the United States and the EU, and to risks to financial stability. We therefore advocate a common international consensus on the regulation of stablecoins, even if the geopolitical situation makes this somewhat difficult”.

In conclusion, Mr Thedéen also highlighted the ongoing work on a digital euro in the euro area and the need for a political discussion on the implications for Sweden.

“It was clear in the work on the new Sveriges Riksbank Act and in the Payment Inquiry that politicians, there and then, did not consider there to be a sufficiently strong societal need for an e-krona. But now that a digital euro is likely to become a reality, we need a new analysis and discussion of whether this will have any consequences for a potential Swedish e-krona.”