SNB board member says stablecoins could weaken monetary policy transmission

Petra Tschudin, a board member at the Swiss National Bank, said stablecoins make it harder for monetary policy to be transmitted across the broader economy. Tschudin said stablecoins are less connected to the existing two-tier financial system, which could weaken the impact of central bank policy on financial markets and the real economy, and stressed digital currency design should not constrain the role and functions of central banks.