Definition ∞ A systemic stablecoin is a digital asset designed to maintain a stable value relative to a fiat currency or other asset, whose potential failure or instability could pose significant risks to the broader financial system. Its size, interconnectedness, and widespread adoption confer this systemic importance. Such stablecoins warrant close regulatory oversight. They are economically significant.
Context ∞ Regulatory bodies globally are increasingly scrutinizing systemic stablecoins due to their growing market capitalization and potential to disrupt traditional financial markets. Debates center on appropriate regulatory frameworks to manage liquidity risks, ensure consumer protection, and prevent financial contagion. The classification and oversight of these assets remain a central point of discussion in cryptocurrency policy.
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