Monetary Authority

Definition ∞ A monetary authority is a central institution, typically a central bank, responsible for managing a nation’s currency, money supply, and interest rates. In the context of digital assets, these authorities consider the implications of cryptocurrencies and central bank digital currencies (CBDCs) on financial stability and monetary policy. They oversee the broader financial system.
Context ∞ News frequently reports on statements and actions by monetary authorities concerning the regulation and integration of digital assets into traditional financial systems. Their stance on stablecoins, CBDCs, and decentralized finance significantly influences market sentiment and policy direction. The ongoing dialogue shapes the future of digital currency within national economies.