Cross-posted from FTAlphaville:
Ousmène Jacques Mandeng is director of advisory boutique Economics Advisory Ltd and a Visiting Fellow at the School of Public Policy of the LSE. He currently works on a number of leading central bank digital currency (CBDC) projects and other blockchain-related payments applications. Here he explains why calls for stable coins hark back to the era defined at the Bretton Woods conference.
Fifty years ago, an embattled Richard Nixon dropped a monetary bombshell: the dollar would no longer be pegged to gold. The currency markets were thrown into chaos as the mechanism that underpinned fixed exchange rates was killed off overnight. The Bretton Woods era had ended and a new monetary order took shape.