Stablecoins and Anonymous Money

2026

Open publication workspace · Sign in to read the full PDF.

AI-generated summary

This paper reveals a critical tension between the historical policy goal of reducing money's anonymity and the increasing use of stablecoins in highly anonymous forms, posing challenges for regulation and fiscal policy.

* Analysis of the anonymity spectrum of traditional money versus stablecoins, highlighting the shift towards greater anonymity in stablecoin holdings and transfers.
* Discussion of the policy implications, including the limitations of current KYC/AML rules and the need for broader regulatory reach and international standards.
* Examination of the fiscal trade-offs associated with anonymity, such as potential revenue losses due to non-compliance, and the migration of illicit activity to stablecoins.

stablecoins, anonymity, regulation, cryptocurrency, illicit finance

Check the original publication for accuracy and context.