The Group of Thirty has published The Past and Future of Money: New Technologies and Economic Risks, a working group report chaired by Kenneth Rogoff, assessing how cryptocurrencies, stablecoins, central bank digital currencies (CBDCs) and tokenized deposits could reshape the two-tier monetary system and the par convertibility that underpins the ‘singleness’ of money. It sets out three headline recommendations: accelerate CBDC work (especially wholesale), encourage innovation within commercial bank money via tokenized deposits, and build robust stablecoin regimes that enable payments innovation without undermining monetary stability or regulatory compliance. The report argues that unbacked crypto such as Bitcoin is ill-suited to function as money, citing volatility and operational constraints, and warns that widespread adoption of privately issued digital currencies could reintroduce a fragmented monetary landscape akin to historical multiple-currency systems. Stablecoins are presented as a more money-like innovation with potential benefits for programmable payments and cross-border transfers, but the paper highlights fragilities in a market it puts at around USD 250 billion, dominated by Tether’s USDT (USD 163 billion) and Circle’s USDC (USD 64 billion), and notes repeated depegging episodes including USDC trading below USD 0.87 in March 2023. It also emphasises financial integrity risks, citing that stablecoins account for 63 percent of on-chain illicit transaction volume, and recommends ‘same activity, same risk, same potential for facilitating tax evasion and illegal acts, same regulatory outcome’ standards, including stronger traceability and anti-money laundering controls, prohibitions on interest-like inducements, and reserve arrangements that minimise run risk, with a preference for reserves held in central bank deposits if stablecoins become systemic. On the United States’ Guiding and Establishing National Innovation for U.S. Stablecoins Act, the report flags shortcomings around transaction traceability, redemption frictions and issuer failure procedures, and anticipates iterative tightening and international coordination as stablecoins move further into mainstream finance. It notes that U.S. regulators have one year from enactment to issue implementing rules for the Act.
G30 2025-10-01
Group of Thirty releases future of money report calling for faster CBDC development and robust stablecoin regulation
The Group of Thirty's report, "The Past and Future of Money," chaired by Kenneth Rogoff, examines cryptocurrencies, stablecoins, CBDCs, and tokenized deposits. It urges accelerating CBDC development, fostering innovation in commercial bank money, and establishing robust stablecoin regimes. The report deems unbacked cryptocurrencies unsuitable as money and stresses stringent regulatory standards for financial integrity.