ECB report says the term 'stablecoin' needs reform because of its ambiguity

A new European Central Bank (ECB) report calls for the term "stablecoin" to be reformed or reconsidered because of its ambiguity.

The 30-page report the Eurozone's central bank, published Tuesday, drew a distinction between stablecoins and existing forms of currencies, defining stablecoins by a few key characteristics based on the purposes they serve: as a crypto asset, as a new payment method, and as an alternative store of value.

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The report referred to stablecoins as digital units of value that are not a form of any currency, and which rely on tools to decrease their price fluctuations against existing, government-issued currencies. 

According to the report, although the term "stablecoin" has various benefits, the use of the term could make false promises of stability and consequentially put consumers at risk. 

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