The Centre for Economic Policy Research (CEPR) Research Policy Network (RPN) European Financial Architecture, in collaboration with SAFE (Sustainable Architecture for Finance in Europe), will host a web series on the "Financial Regulation in the Era of Fragmentation, AI, and Geopolitics".
The series will discuss how financial regulation can be made simpler, more coherent, and more effective. The series will explore key areas where reforms may improve both resilience and efficiency. We invite you to attend the second web seminar on
Financial Regulation in the Era of Fragmentation, AI, and Geopolitics
Session 2: Regulatory Responses to the Financial Stability Implications of Stablecoins
Monday, 4 May 2026, 4:00 p.m., CEST, online
Presenter: Ulrich Bindseil, Honorary Professor TU Berlin and SAFE Senior Fellow
Discussant: Ignazio Angeloni, European University Institute and SAFE Senior Fellow
Moderator: Jan Krahnen, SAFE Founding Director emeritus and CEPR
Many observers expect stablecoins to emerge as a widely adopted new form of money. Policymakers in the current U.S. administration have suggested that U.S.-issued stablecoins could achieve global circulation, potentially strengthening demand for U.S. Treasuries and reinforcing the international role of the dollar. At the same time, recent industry initiatives envisage the use of stablecoins as settlement assets in cross-border payments, for example through so-called “stablecoin sandwich” arrangements.
This webinar examines the flow-of-funds implications of large-scale global stablecoins for the financial system, including in a highly asymmetric scenario, with a particular focus on financial stability risks and possible policy responses. It compares regulatory approaches across jurisdictions, highlighting both differences and areas of common ground, especially the widespread view that stablecoins should not be remunerated. It further explores alternative ways to address the risks associated with successful stablecoins, proposes a set of core regulatory principles, and discusses the widespread belief that prohibiting remuneration is suitable to safeguard financial stability. Finally, it outlines three regulatory options consistent with these principles.
