International Monetary Fund (IMF) calls for protection of users and financial systems that use electronic money. This recommendation stems from the increasingly widespread use of crypto currencies.

Regulators should, according to the IMF, focus on consumer protection and the integrity of the entire payment system. E-money has been around for quite some time and the number of its users continues to grow rapidly. Unlike most stablecoins issued by individuals, e-money is used within a regulated framework.

According to the IMF, for regulators and supervisors tasked with protecting consumers and ensuring a level playing field for all financial intermediaries, it can be difficult to keep pace with this development.

In this sense, it indicates that those responsible for these bodies must reflect on the best way to protect users in the event of the (potentially systemic) bankruptcy of electronic money issuers, in particular by preventing the funds of the customers concerned from being lost.