A Golden Finance report stated that Circle recently released a White Paper titled ‘Risk Capital for Stable Value Tokens’, proposing a new risk-based capital management model for stable coins and other digital currency Tokens. The White Paper’s authors believe that stable coins need sufficient capital reserve requirements, which exceed the current capital standards established under the Basel banking regulatory framework, to mitigate the specific risks of stable coins, other legal tender Tokens, and their issuers. According to the authors, these unique risks include, but are not limited to, Token price declines due to market trading and the prevalence of the secondary market, followed by ‘bank runs’ of digital Tokens due to excessive discarding, operational risks, and technical risks.
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Circle propõe novo quadro de risco de capital para stablecoins
A Golden Finance report stated that Circle recently released a White Paper titled ‘Risk Capital for Stable Value Tokens’, proposing a new risk-based capital management model for stable coins and other digital currency Tokens. The White Paper’s authors believe that stable coins need sufficient capital reserve requirements, which exceed the current capital standards established under the Basel banking regulatory framework, to mitigate the specific risks of stable coins, other legal tender Tokens, and their issuers. According to the authors, these unique risks include, but are not limited to, Token price declines due to market trading and the prevalence of the secondary market, followed by ‘bank runs’ of digital Tokens due to excessive discarding, operational risks, and technical risks.