Stablecoins

Stablecoins are a specific type of crypto asset whose value is pegged to a stable reference value, for example the euro or gold. Because of this direct link to the financial system, stablecoins may be a source of risks for financial stability. In Austria, the OeNB, together with the Financial Market Authority (FMA), works to ensure that these risks are kept to a minimum.

How can stablecoins be used?

Stablecoins can be used just like money in everyday digital life. You can use stablecoins to buy crypto assets, for example, or make cross-border payments without involving a bank or another payment service provider. Unlike ordinary crypto assets like Bitcoin or Ether, stablecoins are designed to maintain a stable value by being linked to a stable reference value, for example a traditional currency. Issuers of stablecoins, for example technology companies, must hold sufficient high-quality reserves to be able to exchange the stablecoins they have issued for real money at any time.

What is the role of the OeNB and the FMA?

As stablecoins are pegged to reference values like currencies, they are directly linked to the financial market. Therefore, adverse developments may have direct implications not only for stablecoin holders, but also for financial stability or even monetary policy. In the EU, the crypto assets regulation (“MiCA”) sets out rules that minimise the associated risks for consumers and the financial market. In Austria, the OeNB and the FMA ensure that issuers and service providers comply with these rules. In particular, our tasks are

  • market monitoring: We continuously analyse trends in the crypto market to identify potential threats early on.
  • expert opinions: We prepare expert opinions as part of the authorisation process for new stablecoin issuances.
  • policy support: Together with the FMA, we work to implement the MiCA regulation, helping to strike a balance between innovation and security.