Federal Reserve Analyzes Inclusion of Payment Stablecoins in Monetary Aggregates

Researchers at the U.S. Federal Reserve have analyzed the possibility of including payment stablecoins in the U.S. monetary aggregates. They explained that if used as a means of payment, stablecoins could be included in M1, and if utilized as a store of value, they could be included in M2. On the 4th, Fed researchers evaluated in their report "New Forms of Money and the U.S. Monetary Aggregates" that payment stablecoins meet the definition of money. The researchers define money as a safe and stable asset and stated that the functions of an asset can be distinguished as a "medium of exchange" and a "store of value," which can help determine whether to include it in monetary aggregates. They analyzed that if payment stablecoins are used as a store of value in virtual asset transactions, they could be included in M2, and if they spread as a common means of payment, they could be included in M1. However, they emphasized that reliable data and solutions to the issue of double counting are necessary for inclusion in monetary aggregates. The researchers mentioned that the emergence of blockchain-based currencies demonstrates the need for continuous evaluation of the definition of monetary aggregates and suggested that the Fed should monitor changes in the digital asset market and be prepared to adjust its data collection systems and definitions of monetary aggregates.

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