Journal articles: 'Stablecoins'

1

Ante, Lennart, Ingo Fiedler, Jan Marius Willruth, and Fred Steinmetz. "A Systematic Literature Review of Empirical Research on Stablecoins." FinTech 2, no. 1 (January 5, 2023): 34–47. http://dx.doi.org/10.3390/fintech2010003.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

This study reviews the current state of empirical literature on stablecoins. Based on a sample of 22 peer-reviewed articles, we analyze statistical approaches, data sources, variables, and metrics, as well as stablecoin types investigated and future research avenues. The analysis reveals three major clusters: (1) studies on the stability or volatility of different stablecoins, their designs, and safe-haven-properties, (2) the interrelations of stablecoins with other crypto assets and markets, specifically Bitcoin, and (3) the relationship of stablecoins with (non-crypto) macroeconomic factors. Based on our analysis, we note future research should explore diverse methodological approaches, data sources, different stablecoins, or more granular datasets and identify five topics we consider most significant and promising: (1) the use of stablecoins in emerging markets, (2) the effect of stablecoins on the stability of currencies, (3) analyses of stablecoin users, (4) adoption and use cases of stablecoins outside of crypto markets, and (5) algorithmic stablecoins.

2

Chen, Kuo-Shing, and Shen-Ho Chang. "Volatility Co-Movement between Bitcoin and Stablecoins: BEKK–GARCH and Copula–DCC–GARCH Approaches." Axioms 11, no. 6 (May 29, 2022): 259. http://dx.doi.org/10.3390/axioms11060259.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

This paper aims to investigate and measure Bitcoin and the five largest stablecoin market volatilities by incorporating various range-based volatility estimators to the BEKK- GARCH and Copula-DCC-GARCH models. Specifically, we further measure Bitcoins’ volatility related to five major stablecoins and examine the connectedness between Bitcoin and the stablecoins. Our empirical findings document that the connectedness between Bitcoin and stablecoin market volatility behaviors exhibits the presence of stable interconnection. This study is of particular importance since it is crucial for market participation in the ongoing crypto assets to be informed about both the volatility patterns of major cryptocurrencies and the relative volatility of Bitcoin against the stablecoin markets. Eventually, we find that there is no systematic evidence for the various parity deviations of the stablecoins that are profoundly impacted by Bitcoin volatility. Thus, Bitcoin and the largest stablecoin Tether could stabilize together. However, Bitcoin shall not be generalized to other stablecoins in terms of stability results.

3

Liao, Gordon Y., and John Caramichael. "Stablecoins: Growth Potential and Impact on Banking." International Finance Discussion Paper 2022, no. 1334 (January 31, 2022): 1–26. http://dx.doi.org/10.17016/ifdp.2022.1334.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Stablecoins have experienced tremendous growth in the past year, serving as a possible breakthrough innovation in the future of payments. In this paper, we discuss the current use cases and growth opportunities of stablecoins, and we analyze the potential for stablecoins to broadly impact the banking system. The impact of stablecoin adoption on traditional banking and credit provision can vary depending on the sources of inflow and the composition of stablecoin reserves. Among the various scenarios, a two-tiered banking system can both support stablecoin issuance and maintain traditional forms of credit creation. In contrast, a narrow bank approach for digital currencies can lead to disintermediation of traditional banking, but may provide the most stable peg to fiat currencies. Additionally, dollar-pegged stablecoins backed by adequately safe and liquid collateral can potentially serve as a digital safe haven currency during periods of crypto market distress.

4

Gorbacheva, Tatiana A. "Stablecoins As a New Word in the Cryptocurrency Market." Financial Journal 14, no. 1 (February 2022): 126–39. http://dx.doi.org/10.31107/2075-1990-2022-1-126-139.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

In the past few years, along with the crypto assets market, a new term has appeared: stablecoins. Unlike cryptocurrencies, however, not so much research has been devoted to this topic. The emergence of global stablecoin projects, a significant increase in the volume of investment initiatives, and growth in the number of transactions have forced central banks to seriously pay attention to these in order to ensure financial stability as one of their functions. This topic is undoubtedly relevant due to the novelty of the concept which has appeared. The purpose of this article is to study the economic essence of stablecoins, their types, and the current state of this market. The methods of comparative analysis as well as critical and systematic approach to the study of information are used in the work. Existing ways to define the concept of stablecoins are investigated. The classifications of stablecoins and the main types of the most reliable coins on the market are examined. The current state of the stablecoin market is analyzed. As a result of the study, a number of conclusions have been made. Despite the lack of a legally fixed and generally accepted definition of stablecoins, in general, stablecoins are tokens secured by different types of assets. The economic essence of stablecoins is revealed through the goals of their creation, types of security and stabilization mechanisms, as well as the nature of the relationship between the issuer and the owner of the stablecoin. Over the past three years, the stablecoin market has grown almost fivefold. Such growth means significant penetration into the payment system, and then into the global financial system, which requires the development of international regulatory standards to minimize possible risks and preserve financial stability. The prospects for the development of stablecoins are associated with the creation and promotion of digital currencies of central banks (central securities) and cross-border payments in one or more central securities.

5

Baumeister, Alexander, and Sascha Hägele. "Algorithmische Stablecoins." WiSt - Wirtschaftswissenschaftliches Studium 52, no. 11 (2023): 11–18. http://dx.doi.org/10.15358/0340-1650-2023-11-11.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Als innovatives Instrument zur Portfoliodiversifikation finden Stablecoins zunehmend Anklang am Kryptowährungsmarkt. Insbesondere Anlegern, welche die hohe Volatilität von Kryptowährungen scheuen, versprechen sie eine vermeintlich sichere Kapitalanlage durch einen stabilen Marktpreis. Dieser Beitrag gibt einen Überblick über Stablecoin-Varianten und zeigt, dass sich die beträchtlichen Unterschiede in der Konzeption einzelner Stablecoins deutlich auf die Marktpreisstabilität auswirken.

6

Włosik, Katarzyna, Blanka Łęt, Konrad Sobański, and Wojciech Świder. "Cross-sectional data on stablecoin characteristics." F1000Research 11 (October 17, 2022): 1188. http://dx.doi.org/10.12688/f1000research.126298.1.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

The article presents a dataset on the characteristics of stablecoins. Stablecoins represent a relatively young but increasingly important branch of the cryptocurrency market. Although they all share the same goal of maintaining a stable value in the digital market, they form a highly heterogeneous group. They differ in terms of collateral and stabilization mechanism, peg, availability of the technical documentation, presence on crypto exchanges or age. The dataset is cross-sectional and was created based on internet research. Individual information was collected from websites of the stablecoin projects and a crypto-data aggregator, and to a lesser extent from other auxiliary sources (websites related to finance and cryptocurrencies). The dataset is unique as there are no publicly available databases encompassing the features of stablecoins. It can be used in all stablecoin-related analyses to characterise the examined coins and to investigate the relationship between cryptocurrency market developments and stablecoin features.

7

Lukianchuk, Denys Yu. "The Evolutionary Development of Money: From Minted Coins to Cryptocurrencies." Business Inform 11, no. 538 (2022): 190–94. http://dx.doi.org/10.32983/2222-4459-2022-11-190-194.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

The article is aimed at studying the evolution of money. The article examines the history of the emergence and evolutionary development of money and cryptocurrencies. Blockchain technology is analyzed, as well as the technological difference between Bitcoin, Ethereum, Solana cryptocurrencies is considered. The issues of the operation of the Ethereum blockchain and smart contracts are covered. An analysis of blockchain technology and the use of cryptocurrencies as a means of payment is carried out. The type of cryptocurrency such as a stablecoin is revealed in its variety. Comparisons of native blockchain coins and stablecoins as a means of payment, further of USDC and USDT stablecoins, are made. An analysis of differences between the centralized and decentralized stablecoins is carried out. It is specified what the stablecoins USDC, USDT, DAI are backed by. It is analyzed what share of the market is occupied by USDT, USDC, and DAI. The advantages and disadvantages of stablecoins are identified. A characterization of activity of the Central Bank Digital Currency (CBDC) with its connection to central banks is presented. It is determined that stablecoins are an attempt to objectively eliminate the high volatility of traditional cryptocurrencies such as Bitcoin or Ethereum by tying the value of a stablecoin to one or more other assets, such as fiat currency. Blockchain technology along with stablecoins can increase the efficiency of cross-border payments. With the growing demand for use, a stablecoin can become one of the important elements of the payment infrastructure. As result of the study, a comparison between cryptocurrencies and the companies Visa, Paypal in terms of processing speed and the amount of payment commissions is made. It is determined that blockchain and cryptocurrency technologies are a new evolutionary stage in the development of money. It is substantiated that the effect of using blockchain technology allows to cheaper and faster money transfers. It is noted that blockchain technology is young, but cooperation between traditional financial companies and cryptocurrencies is already visible.

8

Zhang, Hantian. "Analysis of the Possible Demand of Stablecoins." Advances in Economics, Management and Political Sciences 5, no. 1 (April 27, 2023): 379–84. http://dx.doi.org/10.54254/2754-1169/5/20220105.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Stablecoins, which are anchored by certain assets, have been gaining market attention in recent years as a branch of cryptocurrencies. The dollar domination in currency markets exists in cryptocurrency since some mainstream stablecoins anchor dollar. Looking back to when the Bretton Woods system was established, the dollar was pegged to gold and gradually became the worlds main currency. Dollar-based global stablecoins havent been completely developed, and their use on a global scale carries financial risks. This paper discusses the objectives of stablecoins and the differences between vision and reality based on existing literature and research data. In the process of realizing price stability, stablecoins also generate credit risk, and fall into the logical dilemma that leaving fiat currency and achieving price stability cannot be achieved simultaneously. This paper suggests that the compromise of stablecoin to centralization can solve part of current problems. Nevertheless, decentralization needs to be studied continuously in order to achieve stablecoins objectives.

9

Fan, Meng, and Jinping Dai. "Monetary attribute of stablecoins: A theoretical and empirical test." National Accounting Review 5, no. 3 (2023): 261–81. http://dx.doi.org/10.3934/nar.2023016.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

<abstract> <p>With the continuous expansion of their market size and scope of use, the monetary attribute of stablecoins has become a focal point. The identification of the monetary attribute of stablecoins is a prerequisite for their supervision. Based on the essence and macroeconomic effects of money, this paper analyzes the monetary attribute of stablecoins from theoretical and empirical perspectives. We find that in the traditional financial market, stablecoins are not widely accepted, and their increased supply competes with traditional financial assets. As new types of digital assets, they do not possess a monetary attribute. However, in the digital asset market, stablecoins are widely used. The increase in issuance pushes up asset prices and brings liquidity effects to the market. Therefore, stablecoins possess a monetary attribute in the digital asset market and play the role of "digital fiat currency". This private sector liquidity is not controlled by the government and tends to accumulate risk. Therefore, the government should clarify the legal attribute of stablecoins according to their monetary attribute, strengthen the supervision of stablecoin issuers and prevent the private sector from monopolizing the digital asset market transaction medium.</p> </abstract>

10

Stein Smith, Sean. "How Stablecoin Implementation Can Lead to Increased Accounting Clarity and Standardization." Asian Journal of Finance & Accounting 11, no. 2 (November 12, 2019): 110. http://dx.doi.org/10.5296/ajfa.v11i2.15740.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Stablecoins represent the current iteration of cryptoasset development and implementation but remain an area in which further development and research is necessary to improve the reporting and accounting codification conversation. Although the various iterations of stablecoins do purport to address some of the significant problems and issues preventing wide adoption and implementation of cryptocurrencies there is also some debate around the future of these cryptoassets. Accounting and reporting guidelines for cryptoassets overall, including stablecoins, remain fragmented due to regulatory misunderstanding as well regulatory scrutiny over proposed stablecoin projects. What this research does is present both an analysis of stablecoins as well as put forth a number of suggestions as to how stablecoins can help drive the accounting classification dialogue forward. Written with both a practitioner and academic audience in mind this research can be used to pursue further implementation and research projects moving forward.

11

Ade Rizki Saputra. "The Urgency of Stable Coin Regulation on Crypto Assets in Indonesia." Formosa Journal of Social Sciences (FJSS) 2, no. 3 (September 29, 2023): 343–56. http://dx.doi.org/10.55927/fjss.v2i3.6106.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Stablecoins, as a form of innovation in the crypto asset ecosystem, have emerged as an attractive alternative in bridging the gap between fiat currencies and highly volatile crypto assets. In Indonesia, the presence of stablecoins has sparked debate about the need for strong regulations to mitigate risks and promote sustainable growth in the crypto asset industry. This journal outlines the urgency of stablecoin regulation on crypto assets in Indonesia. We analyze the possible implications of the presence of stablecoins without adequate regulation, including their potential impact on financial market stability, consumer protection, and national security. Additionally, we investigate regulatory approaches that the Indonesian government can take to create a conducive environment for the healthy growth of the crypto asset ecosystem while safeguarding the public interest. Through a multidisciplinary approach, we present arguments supporting the importance of developing a clear and sustainable regulatory framework for stablecoins in Indonesia. We also highlight the challenges and opportunities associated with these regulations and provide insight into how appropriate regulations can provide long-term benefits for the Indonesian economy. This research aims to provide a better understanding of the complexity of stablecoin regulation in the Indonesian context, while stimulating further discussion about the regulatory direction that should be taken in the face of rapid developments in the crypto asset industry

12

Ferreira, Agata. "The Curious Case of Stablecoins—Balancing Risks and Rewards?" Journal of International Economic Law 24, no. 4 (November 30, 2021): 755–78. http://dx.doi.org/10.1093/jiel/jgab036.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

ABSTRACT Stablecoins is a blockchain-driven innovation and a new subset of crypto assets. Even though they could transform how payments are made, regulators paid little attention to them until recently. The announcement of the Libra project in 2019 elevated stablecoins to the top of the regulatory agenda. Libra’s global scale and its capacity to reach billions of potential users through a user-centric social network platform that is already seamlessly integrated within the lives of the global population and the potential impact of a global yet fast and cheap payment solution raised many issues and concerns among authorities related to not only financial stability, monetary policy, and competition, but also money laundering, financing of terrorism, and others. Addressing stablecoins has proven challenging for many regulators as they face a difficult task of balancing financial stability, with innovation. This paper analyzes how the official perception of stablecoins has evolved, from dismissiveness and underestimation to serious concern. It evaluates existing regulatory responses, highlights regulatory dilemmas, and makes recommendations regarding future regulatory approaches. To reap the benefits of stablecoin innovation, regulators need to take a broader long-term view of stablecoins beyond the perceived risks and embrace their advantages. Regulations should not stifle this innovation but support a diverse ecosystem of stablecoins and foster competition.

13

Jarno, Klaudia, and Hanna Kołodziejczyk. "Does the Design of Stablecoins Impact Their Volatility?" Journal of Risk and Financial Management 14, no. 2 (January 20, 2021): 42. http://dx.doi.org/10.3390/jrfm14020042.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

In this paper, we shall compare the average volatility that characterises the main stablecoin design types with a view to answering the question of whether all stablecoin designs accomplish the goal of minimising their price fluctuations to the same degree. Our research is motivated by the lack of rigorous studies comparing volatility of different stablecoin types stressed in the literature as well as the practical importance of such a comparison from the investors’ viewpoint. We opted for a standard volatility measure, i.e., standard deviation of return rates, corrected it for autocorrelation, and detected differences between distributions of the measure in three stablecoin groups using various non-parametric tests, i.e., the Kruskal–Wallis test, the bootstrap F-test, post-hoc tests and non-parametric contrasts. We proved that stablecoins do not deliver equally on the promise to provide stable market value with tokenised funds being leaders. Tokenised funds design involves complete coverage of the stablecoin supply in units of the currency of reference as well as great dependence on the trusted third-party acting as a trustee for the collateral. Our study reveals that existing complex stablecoins designs hardly compete with this simple design in terms of volatility.

14

ODINTSOV, STANISLAV, and OLGA ZYRYANOVA. "PRACTICE AND TRENDS OF LEGAL REGULATION OF STABLECOINS ON THE EXAMPLE OF USA AND EU LEGISLATION." Economic Problems and Legal Practice 18, no. 6 (December 28, 2022): 66–73. http://dx.doi.org/10.33693/2541-8025-2022-18-6-66-73.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

The development of the economy and society contributes to the comprehensive introduction of digital technologies and the active development of new objects of law. However, the high level of volatility of digital (virtual) financial assets has led to the need to link cryptocurrencies to a physical asset, resulting in a new type of digital secured asset called a stablecoin. The purpose of the study is to study the features of legal regulation of stablecoins on the example of USA and EU legislation, including analyzing various types, as well as the role they play in the tokenization system. There was not much research in the field of law about stablecoins until recently, but everything has changed due to an increase in the number of transactions using stablecoins. However, the issue of legal regulation of stablecoins remains relevant in different jurisdictions, despite some attempts to regulate digital (virtual) assets. As a result of the study, it became obvious that new technologies are rapidly developing, there is a need to adapt them to the legal system because stablecoins will somehow influence the monetary policy of states and in order for various sectors of the economy to carry out their activities, subjects need detailed legal regulation of this part of property turnover.

15

Adams, Austin, and Markus Ibert. "Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel." FEDS Notes, no. 2022-06-03 (June 2022): None. http://dx.doi.org/10.17016/2380-7172.3121.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Stablecoins---digital currencies pegged to an external reference (e.g., the US dollar)---play an increasingly important role in transacting digital currencies. However, with a peg to an external reference comes the risk that the peg breaks and, akin to runs on other financial instruments, the risk of a stablecoin run.

16

EY. "Stablecoins." Realidad Empresarial, no. 12 (January 30, 2022): 2–7. http://dx.doi.org/10.51378/reuca.v1i12.6695.

Full text

APA, Harvard, Vancouver, ISO, and other styles

17

Kochergin, D. A., and A. I. Ivanova. "Stablecoins: Classification, functional features and development prospects." Journal of the New Economic Association 53, no. 1 (2022): 100–120. http://dx.doi.org/10.31737/2221-2264-2022-53-1-5.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

The article is devoted to stablecoins and their prospects for use in the financial market. The authors propose the interpretation and classification of stablecoins and analyze their functional features and development prospects. Also impact of the global economic crisis on stablecoins is analyzed. The findings illustrated that stablecoins differ from traditional electronic money, as well as classic cryptocurrencies, and they can be interpreted as hybrid digital financial assets. Currently, the commonest digital coins with a stable rate are local stablecoins with backing. At the same time, both in terms of capitalization and transaction volume, dominated by centralized fiat-backed and gold-backed stablecoins. Decentralized non-backed stablecoins are not widespread, despite a number of technological innovations that may underlie their stabilization mechanism. The authors have identified main scenarios for the use of local and global stablecoins in the near future. It was observed that at a time of decreased volatility stablecoins are currently predominantly used as a tool to minimize the risk of price volatility in the crypto-assets market. In contrast, the growing interest in applying of global stablecoins under the new reduction volatility mechanisms, may encourage the extensive use of stablecoins in both retail and wholesale payments at the international level. In addition, the development of global stablecoins may entail risks to financial stability and the functioning of monetary systems, to minimize which it is necessary to develop a regulatory framework and financial procedures that take into account the possibility of a wide circulation of stablecoins.

18

Kołodziejczyk, Hanna, and Klaudia Jarno. "Stablecoin – the stable cryptocurrency." Studia BAS 3, no. 63 (2020): 155–70. http://dx.doi.org/10.31268/studiabas.2020.26.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

This article deals with the emerging topic of stablecoins, which is an umbrella term used to refer to a stable cryptocurrency. The authors shall address a number of questions, namely: what are stablecoins; when are they used; what are the most common characteristics of stablecoins. The authors shall also present a taxonomy of stablecoins based on the mechanism employed to stabilize their value. A more thorough exploration of the market for stablecoins will follow, with particular attention given to the controversies surrounding the most popular of stablecoins – Tether.

19

Kozhukhova, T. V., Yu H. Bocharova Yu. H., and O. V. Ishchenko. "STABLECOINS: BENEFITS AND RISKS FOR FINANCIAL STABILITY OF SUSTAINABLE DEVELOPMENT." TRADE AND MARKET OF UKRAINE, no. 1 (51) 2022 (2022): 77–86. http://dx.doi.org/10.33274/2079-4762-2022-51-1-77-86.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Objective. The objective of the present article is to identify the benefits and risks of stablecoins for the financial stability of sustainable development. Methods. In the research process, the following general scientific methods and techniques of cognition were used: methods of scientific abstraction, analysis and synthesis (to study the essence of decentralized finance, stablecoins), systematic generalization (to systematize the categorical apparatus of decentralized finance research, to determine the essence of stablecoins and their types, the positive aspects of stablecoins, highlighting the risks of using stablecoins, measures to reduce the risks associated with their use). Results. Based on the results of the conducted research, the essence and types of stablecoins, the advantages and disadvantages of stablecoins by category were determined; the advantages of stablecoins (reliable, transparent, secure decentralized structure, low volatility, technical and physical security against manipulation, automatic execution of contracts, no need for an element of trust, reduction of the cost of transactions when increasing their speed, protection of capital from market instability, use by traders and investors for hedging risks, protection against high inflation rates, automation and lack of regulation, economic efficiency); the risks of using stablecoins are highlighted (market risks (vulnerability to the volatility of the crypto market), liquidity risks, cyber risks (asset theft, undermining the reputation of platforms, which can lead to withdrawal of funds by depositors), money laundering and terrorist financing risks, legal and legal uncertainties; the issue of regulation is considered stablecoins; measures to reduce the risks associated with the use of stablecoins are defined.

20

Clark, Jeremy, Didem Demirag, and Seyedehmahsa Moosavi. "Demystifying Stablecoins." Queue 18, no. 1 (February 29, 2020): 39–60. http://dx.doi.org/10.1145/3387945.3388781.

Full text

APA, Harvard, Vancouver, ISO, and other styles

21

Clark, Jeremy, Didem Demirag, and Seyedehmahsa Moosavi. "Demystifying stablecoins." Communications of the ACM 63, no. 7 (June 18, 2020): 40–46. http://dx.doi.org/10.1145/3386275.

Full text

APA, Harvard, Vancouver, ISO, and other styles

22

Waerzeggers, Christophe. "Taxing Stablecoins." Fintech Notes 2023, no. 002 (May 2023): 1. http://dx.doi.org/10.5089/9798400227226.063.

Full text

APA, Harvard, Vancouver, ISO, and other styles

23

Eichengreen, Barry, and Ganesh Viswanath-Natraj. "Stablecoins and Central Bank Digital Currencies: Policy and Regulatory Challenges." Asian Economic Papers 21, no. 1 (2022): 29–46. http://dx.doi.org/10.1162/asep_a_00843.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Abstract Stablecoins and central bank digital currencies are on the horizon in Asia, and in some cases have already arrived. This paper provides new analysis and a critique of the use case for both forms of digital currency. It provides time-varying estimates of devaluation risk for the leading stablecoin, Tether, using data from the futures market. It describes the formidable obstacles to widespread use of central bank digital currencies in cross-border transactions, the context in which their utility is arguably greatest. The bottom line is that significant uncertainties continue to dog the region's digital currency initiatives.

24

Azzimonti, Marina, and Vincenzo Quadrini. "Digital Assets and the Exorbitant Dollar Privilege." AEA Papers and Proceedings 114 (May 1, 2024): 153–56. http://dx.doi.org/10.1257/pandp.20241069.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

This paper analyzes how the rise of digital assets, particularly Stablecoins, affects the US dollar's dominance in global financial markets. It discusses whether Stablecoins, backed by US debt or other assets such as cryptocurrencies, could replace traditional US safe assets. On the one hand, Stablecoins could increase the demand for dollar reserves, strengthening the international role of the dollar. On the other hand, if Stablecoins are backed by non-dollar reserves, the global demand for dollars may decline, potentially reducing its international role.

25

Al-Afeef, Mohammad Ali, Raed Walid Al-Smadi, and Arkan Walid Al-Smadi. "The role of stable coins in mitigating volatility in cryptocurrency markets." International Journal of Applied Economics, Finance and Accounting 19, no. 1 (May 27, 2024): 176–85. http://dx.doi.org/10.33094/ijaefa.v19i1.1580.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

This study aims to analyze the link between Perceived Volatility Reduction (PVR), Risk Perception, Stablecoin Usage Frequency, Market Confidence, and Stablecoin Adoption (SA). The primary goal is to determine if and to what degree these variables impact stablecoin adoption. We created a questionnaire to gather information from 198 Malaysians. To analyze the research model and test the hypotheses, the Structural Equation Modeling-Partial Least Squares (SEM-PLS) method was utilized. According to the findings, there is a strong and positive association between Perceived Volatility Reduction (PVR) and Stablecoin Adoption (SA). Market players are more likely to adopt stablecoins if they perceive them as useful instruments for mitigating the severe price volatility inherent in traditional cryptocurrencies. This finding emphasizes the importance of risk perception and market stability in driving market behavior. Trust in stablecoin systems, transparency, and regulatory, compliance influenced PVR and SA. The study's findings underscore the significance of perceived volatility reduction (PVR) in driving stablecoin adoption (SA), highlighting the importance of risk perception and market stability. Trust in stablecoin systems, transparency, and regulatory compliance emerge as crucial factors influencing PVR and SA. These insights offer valuable guidance for investors navigating the cryptocurrency market, governments managing stablecoin supply, and scholars studying trust dynamics in the cryptocurrency ecosystem.

26

Andryushin, S. A., and D. A. Kochergin. "Stablecoins as a new form of digital money: Emission, circulation, regulation and risk management." Voprosy Ekonomiki, no. 6 (June 8, 2022): 42–68. http://dx.doi.org/10.32609/0042-8736-2022-6-42-68.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Stablecoins as a new form of digital money, in contrast to the traditional forms of money prevailing today, maintain their stability by being tied to basic reserves (national currencies, goods or digital assets). Basically, they circulate in developed countries (primarily in the USA, EU countries or financial centers of Asia) in order to carry out exchange transactions with digital currencies or increase trade turnover and lending volumes. Over the time, they can become not only a reliable and inclusive means of payment, which will be actively used in transactions both nationally and internationally, but also widely used as a store of value. However, the integration of stablecoins with a modern monetary and payment system can only happen if there is a proper and coordinated regulation of all monetary authorities. Based on the analysis of the economic nature, the current standards and models for regulating the emission and circulation of stablecoins, as well as the existing international practice of managing their risks, it has been concluded that it is necessary to abandon the prohibitive approach to the use of this form of digital money. Instead of banning the use of stablecoins as a means of payment and savings, the Bank of Russia should justify and propose acceptable models for regulating the issue and circulation of stablecoins. Such models should provide for clear back-up mechanisms for the issue of stablecoins and requirements for their issuers to minimize the risks of both holders and issuers of stablecoins.

27

KEVORKOVA, ZHANNA, and ARMAN TOGANYAN. "RISKS OF THE SPREAD OF NEW DIGITAL CURRENCIES (STABLECOINS), AND ISSUES OF THEIR REGULATION." Economic problems and legal practice 16, no. 06 (December 28, 2020): 105–9. http://dx.doi.org/10.33693/2541-8025-2020-16-6-105-109.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Task. This article examines the threats and risks of the spread of new digital currencies, in particular stablecoins. Digital currencies are classified, their advantages and disadvantages are indicated. In particular, the article reveals the types of stablecoins and the issues of their regulation. The advantages of stablecoins over cryptocurrencies and virtual currencies are also noted. Summary. Taking into account advantage of stablecoins and disadvantages of other digital currencies, it can be predicted that this type can become one of the most common types of digital currencies. However, this could potentially have a potential shift in the virtual asset ecosystem as well as in the global economy. The proliferation of stablecoins introduces new risks and threats in the area of money laundering and terrorist financing. The regulation of these digital currencies is a topical issue for the FATF, as well as for national FIU structures. Disclosure of these issues is being considered in accordance with the draft law «Law on Cryptocurrency 2020» and amendments to the FATF Recommendation 16, called «Travel rule» for cryptocurrency. Practical importance. Conclusions lead to understanding: the characteristics of stablecoins and the risks of their spread; the measures and approaches taken by the FATF and national regulators to regulate the field of digital currencies and reduce the ML / TF risks.

28

Okunleye, Olalekan Jamiu. "The Role of Information Governance in Mitigating Financial Crime Risks in Stablecoin Transactions." Journal of Engineering Research and Reports 26, no. 7 (July 3, 2024): 317–33. http://dx.doi.org/10.9734/jerr/2024/v26i71212.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

This study investigates the role of information governance in mitigating financial crime risks in stablecoin transactions. Using a variety of analytical techniques, including simple linear regression, sentiment analysis with NLP tools, logistic regression, and machine learning models, the research evaluates the impact of information governance on innovation, user trust, financial crimes, and the effectiveness of combined compliance measures. The findings indicate that strict information governance regulations reduce innovation but enhance market stability and user trust. Robust governance correlates strongly with increased user adoption, while higher anonymity features in stablecoins are linked to a higher incidence of financial crimes. Integrating KYC/AML compliance with transaction monitoring significantly improves the detection and prevention of financial crimes compared to standalone approaches. These insights provide valuable guidance for policymakers, regulatory authorities, and financial institutions to develop strategies that balance innovation with enhanced security and compliance in the stablecoin market.

29

Jausyan, Maulana Ahmad Rayhan Al, and Obed Juan Benito. "Regulating Crypto Assets: Understanding Stablecoins and Unbacked Crypto Assets Systemic Implication on the Financial Market." International Journal of Financial Systems 1, no. 2 (March 22, 2024): 185–216. http://dx.doi.org/10.61459/ijfs.v1i2.29.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

To bring clarity to the emerging regulatory concerns, this study employs GARCH and TVP-VAR models to compare stablecoins and unbacked crypto assets' profiles and their systemic implications to the financial market. Using daily price data, it reveals that stablecoins are more stable than unbacked crypto assets while both are having weak connectivity at the same time. Moreover, stablecoins exert a more significant systemic impact on the financial market. The time-varying analysis also indicates high connectivity between crypto assets and traditional financial assets during crisis. These findings inform regulatory frameworks, ensuring stability in the financial system while promoting fintech innovation.

30

Xie, Yao, Sang Baum Kang, and Jialin Zhao. "Are Stablecoins Safe Havens for Traditional Cryptocurrencies? An Empirical Study during the COVID-19 Pandemic." Applied Finance Letters 10 (March 1, 2021): 2–9. http://dx.doi.org/10.24135/afl.v10i.342.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

We investigate whether stablecoins are safe havens for traditional cryptocurrencies with fresh evidence from the recent crisis period of the COVID-19 pandemic. Our results support the safe-haven properties of Tether for both before and during the pandemic. For Digix, a gold-backed stablecoin with relatively small market capitalization, we find a change in characteristics before and during the pandemic, but do not find statistically significant evidence for its safe-haven properties. Furthermore, we document that, when considering the economic benefits and costs of adding safe-haven assets into cryptocurrency portfolios, the one with Tether outperforms both a naked portfolio and the portfolio with a traditional safe-haven asset such as gold.

31

Meng, Shan, Clara Zhou, Martina K. Linnenluecke, and Xi Zhao. "Stablecoins and Business Ethics." Academy of Management Proceedings 2021, no. 1 (August 2021): 12422. http://dx.doi.org/10.5465/ambpp.2021.12422abstract.

Full text

APA, Harvard, Vancouver, ISO, and other styles

32

Lyons, Richard K., and Ganesh Viswanath-Natraj. "What keeps stablecoins stable?" Journal of International Money and Finance 131 (March 2023): 102777. http://dx.doi.org/10.1016/j.jimonfin.2022.102777.

Full text

APA, Harvard, Vancouver, ISO, and other styles

33

Zhu, Kaixiang. "Legal Regulation of Stablecoins." Beijing Law Review 14, no. 03 (2023): 1142–50. http://dx.doi.org/10.4236/blr.2023.143060.

Full text

APA, Harvard, Vancouver, ISO, and other styles

34

Denk, Lucas. "Consumer protection regarding stablecoins." Frankfurt Law Review 1, no. 2 (April 17, 2024): 29–37. http://dx.doi.org/10.21248/gups.83612.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Virtual currencies have gained popularity as part of the digital transformation of the financial system. In particular stablecoins are becoming increasingly popular with consumers. The tokens, which are pegged to a value and - according to their name - promise price stability, pose significant risks from which consumers need to be protected. This article focuses first on consumerspecific risks (B.) and German consumer protection law and in particular on the applicability of a right of withdrawal from the acquisition of stablecoins (C.). Subsequently, the EU legislator’s effort to minimize price stability as well as transparency and exchangeability risks, the Markets in Crypto-assets Regulation (2023/1114), is examined in terms of its consumer protection instruments (D.).

35

Watsky, Cy, Jeffrey Allen, Hamzah Daud, Jochen Demuth, Daniel Little, Megan Rodden, and Amber Seira. "Primary and Secondary Markets for Stablecoins." FEDS Notes, no. 2024-02-23-3 (February 2024): None. http://dx.doi.org/10.17016/2380-7172.3447.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Stablecoins are increasingly important in decentralized finance (DeFi) and crypto asset markets, and their prominence has led to greater scrutiny of their unique role as expressions of the U.S. dollar running on blockchain networks. Stablecoins attempt to perform a mechanically complex function – to remain pegged to the dollar, even during periods of market volatility.

36

Flores Gálvez, Jessica Nallely, and José Miguel Mata Hernández. "CBDC-MXN: Challenges and Perspectives in The Implementation as a Mexican Digital Currency." Mercados y Negocios, no. 49 (May 1, 2023): 3–20. http://dx.doi.org/10.32870/myn.vi49.7689.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

This research shows a proposal for developing of a Mexican Central Bank Digital Currency by Banco de México. Therefore, a dynamic SWOT matrix is used to present the strengths, weaknesses, opportunities, and threats of the development of the Mexican Central Bank Digital Currency. In addition, an analysis of the stablecoins of the Mexican peso is made to know their landscape and current use, the above making use of Blockchain explorers such as BscScan, Etherscan, Polygonscan, and Tronscan. MMXN, Moneta Digital, is the stablecoin of the Mexican Peso with the most significant number of users and transactions. According to the results obtained, it is shown that the Mexican CBDC is viable, but it must overcome challenges and issues to be implemented and used by the population.

37

Cesaratto, Sergio, and Eladio Febrero. "Central Bank Digital Currencies: a proper reaction to private digital money?" Review of Keynesian Economics 11, no. 4 (November 14, 2023): 529–53. http://dx.doi.org/10.4337/roke.2023.04.05.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

The emergence of private digital currencies poses a threat to payment systems and monetary policy because they challenge all functions of money as we know them. In this paper, we focus mainly on the banking and monetary policy issues raised by stablecoins and Central Bank Digital Currencies (CBDCs). We begin by describing the current working of bank-centered payment systems. We next touch upon cryptoassets and focus on the domestic and international impact of stablecoins. We identify two problems with stablecoins: their role in the breakup of uniform currency, and as a source of financial instability due to the lack of a monetary backstop in the event of a run to withdraw funds in adverse situations. We then deal with the pros and cons of CBDCs, whether they are an adequate response to the challenges raised by stablecoins, their possible impact on monetary and banking policy, and some open economy issues. While we do not see major advantages in private digital currencies as a payment system or as an investment, we also do not find any robust motivation for the introduction of CBDCs beyond geopolitical reasons and the oversight of a technological area.

38

Nekrasova, Inna. "Alternative Protective Instruments of the Russian Currency Market in the Context of High Volatility and Sanctions." Vestnik Volgogradskogo gosudarstvennogo universiteta. Ekonomika, no. 4 (December 2022): 132–40. http://dx.doi.org/10.15688/ek.jvolsu.2022.4.11.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Many economists name deflationary nature as one of the advantages of cryptocurrencies. In this regard, some cryptocurrencies are credited with the ability to protect capital from inflation of fiat currencies. However, this issue is debatable. In addition, the relevance of the topic under study is due to the need to create a digital means of payment for international settlements between Russia and its friendly countries. The purpose of this study is to analyze the possibility of using bitcoin and stablecoin as a protective anti-inflationary asset on long-term investment horizons and an international means of payment under sanctions, respectively. To achieve this goal, the author of the article considered the main approaches to determining the role of bitcoin and stablecoin in the economy and money circulation, identified the main threats associated with the legalization of these currencies. As a result of the study, a classification of stablecoins was presented in terms of the type of collateral and the main factors preventing the transformation of bitcoin into a protective asset were identified. At the end of the study, a conclusion was made about the potential use of bitcoin as a protective asset, and stablecoin as a means of international settlements.

39

Canepa, Allegra. "The Role of Payment Services in the Development of the Big Tech Ecosystem." European Business Law Review 33, Issue 7 (December 1, 2022): 1003–20. http://dx.doi.org/10.54648/eulr2022043.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Big techs have gained a predominant footing in the digital market thanks to their ability to retain users and reduce any space for other operators to achieve independence in the market. These US and Chinese companies have acquired and consolidated their market power thanks to their ecosystem structure and the offer of multiple services, mainly payment services. In order to gain a complete understanding of the development and consolidation of these ecosystems, it is crucial to analyse the methods, conditions, and timing of this offer of payment services. However, the offer of these services entails new risks for financial stability which can increase if the platforms decide to issue stablecoins. Indeed any issuance of stablecoins differentiated by ecosystem and specialized by function could generate a potential unbundling of the monetary function. Big Tech, Ecosystem, Algorithms, Market Power, Payment Services, Stablecoins, Financial Regulation, Financial Stability, Monetary Function, Digital Euro.

40

Grobys, Klaus, Juha Junttila, James W. Kolari, and Niranjan Sapkota. "On the stability of stablecoins." Journal of Empirical Finance 64 (December 2021): 207–23. http://dx.doi.org/10.1016/j.jempfin.2021.09.002.

Full text

APA, Harvard, Vancouver, ISO, and other styles

41

Melachrinos, Anastasia, and Christian Pfister. "Stablecoins : le meilleur des mondes ?" Revue française d'économie Vol. XXXV, no. 4 (May 5, 2021): 23–57. http://dx.doi.org/10.3917/rfe.204.0023.

Full text

APA, Harvard, Vancouver, ISO, and other styles

42

Kochergin, D. A. "Economic Nature and Classification of Stablecoins." Finance: Theory and Practice 24, no. 6 (December 12, 2020): 140–60. http://dx.doi.org/10.26794/2587-5671-2020-24-6-140-160.

Full text

APA, Harvard, Vancouver, ISO, and other styles

43

Bertucci, Louis, Sébastien Choukroun, and Julien Prat. "Enjeux et promesses des stablecoins décentralisés." Revue d'économie financière N° 149, no. 1 (March 30, 2023): 73–90. http://dx.doi.org/10.3917/ecofi.149.0073.

Full text

APA, Harvard, Vancouver, ISO, and other styles

44

Zhaksylykbayeva, A. A., and S. Zh Suleimenova. "Stablecoins: legal issues and legal framework." Eurasian Scientific Journal of Law, no. 1 (2) (July 13, 2023): 20–26. http://dx.doi.org/10.46914/2959-4197-2023-1-1-20-26.

Full text

APA, Harvard, Vancouver, ISO, and other styles

45

Tenkam, Herve M., Jules C. Mba, and Sutene M. Mwambi. "Optimization and Diversification of Cryptocurrency Portfolios: A Composite Copula-Based Approach." Applied Sciences 12, no. 13 (June 23, 2022): 6408. http://dx.doi.org/10.3390/app12136408.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

This paper focuses on the selection and optimisation of a cryptoasset portfolio, using the K-means clustering algorithm and GARCH C-Vine copula model combined with the differential evolution algorithm. This integrated approach allows the construction of a diversified portfolio of eight cryptocurrencies and determines an optimal allocation strategy making it possible to minimize the conditional value-at-risk of the portfolio and maximise the return. Our results show that stablecoins such as True-USD are negatively correlated to the other cryptoassets in the portfolio and could therefore be a safe haven for crypto-investors during market turmoil. Our findings are in line with previous studies exhibiting stablecoins as potential diversifiers.

46

Read, Oliver, and Stefan Schäfer. "Libra Project: Regulators Act on Global Stablecoins." Intereconomics 55, no. 6 (November 2020): 392–98. http://dx.doi.org/10.1007/s10272-020-0936-7.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

AbstractGovernments, regulatory authorities and standard-setting bodies started acting on global stablecoins triggered by the Libra announcement. Among the concerns expressed by the G7 and the G20 are risks to the stability of the financial system. The Financial Stability Board and the Financial Action Task Force have worked on regulatory issues and anti-money laundering ahead of the G20 summit in November 2020. Overall the Libra project has raised many questions on the regulatory front. Facebook had to revise the concept as Libra 2.0 and resubmit it for approval in April 2020. The European Commission announced a new regulation on Markets in Crypto-assets (MiCA) including stablecoins in September 2020 as part of a new Digital Finance Package. This opens the next chapter in a regulatory cat and mouse game.

47

De Blasis, Riccardo, Luca Galati, Alexander Webb, and Robert I. Webb. "Intelligent design: stablecoins (in)stability and collateral during market turbulence." Financial Innovation 9, no. 1 (May 6, 2023). http://dx.doi.org/10.1186/s40854-023-00492-4.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

AbstractHow does stablecoin design affect market behavior during turbulent periods? Stablecoins attempt to maintain a “stable” peg to the US dollar, but do so with widely varying structural designs. The spectacular collapse of the TerraUSD (UST) stablecoin and the linked Terra (LUNA) token in May 2022 precipitated a series of reactions across major stablecoins, with some experiencing a fall in value and others gaining value. Using a Baba, Engle, Kraft and Kroner (1990) (BEKK) model, we examine the reaction to this exogenous shock and find significant contagion effects from the UST collapse, likely partially due to herding behavior among traders. We test the varying reactions among stablecoins and find that stablecoin design differences affect the direction, magnitude, and duration of the response to shocks. We discuss the implications for stablecoin developers, exchanges, traders, and regulators.

48

Thanh, Binh Nguyen, Thai Nguyen Vu Hong, Huy Pham, Thanh Nguyen Cong, and Thu Pham Thi Anh. "Are the stabilities of stablecoins connected?" Journal of Industrial and Business Economics, January 20, 2022. http://dx.doi.org/10.1007/s40812-022-00207-3.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

AbstractThis study analyzes the interconnection of the stability of prominent stablecoins including Tether (USDT), USD Coin (USDC), Paxos Standard (PAX), TrueUSD (TUSD) and DAI from 23/11/2019 to 1/04/2021. We find (i) market price fluctuations vary across stablecoins, (ii) instabilities in USDT and USDC significantly drive those of other stablecoins but less convincing evidence for the reverse impact, and (iii) that increases (decreases) in USDT market prices significantly depress (raise) the market prices of the other stablecoins. Interestingly, the algorithmic stablecoin, DAI, is found to be less stable than its USD-backed counterparts.

49

Sheehy, Benedict, John Hawkins, and Juan Diaz-Granados. "Legal Problems and Solutions in Stablecoins: A Multi-Disciplinary Approach Applied to Euro Stablecoins." Review of Law & Economics, March 7, 2023. http://dx.doi.org/10.1515/rle-2022-0053.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Abstract An increasingly important form of electronic currency is the ‘stablecoin’. Unlike other high-profile ‘cryptocurrencies’, such as Bitcoin, stablecoins claim to be matched by a corresponding amount of secure assets in a national currency to which the stablecoin can be converted at par. These crypto-assets, however, create significant legal and economic problems. Notably, issues about trust in both issuers and backing assets, the risk of runs, and particular challenges associated with public and private law regimes resist the adoption of stablecoin both in Europe and beyond. This article draws from previous experiences to analyse these issues and propose solutions. Taking a multi-disciplinary approach, the article argues that the legal and economic issues surrounding today’s stablecoins could be addressed using the lessons from prior centuries.

50

Catalini, Christian, Alonso de Gortari, and Nihar Shah. "Some Simple Economics of Stablecoins." Annual Review of Financial Economics 14, no. 1 (April 28, 2022). http://dx.doi.org/10.1146/annurev-financial-111621-101151.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Abstract:

Stablecoins have the potential to drastically increase competition and innovation in financial services by reducing our reliance on traditional intermediaries. But they also introduce new challenges, as regulators rely on intermediaries to ensure financial stability, market integrity, and consumer protection. Because they operate at the interface between traditional banking and cryptocurrencies, stablecoins also represent an ideal setting for understanding the key trade-offs cryptocurrencies involve, and insights from robust stablecoin design and regulation are highly relevant for related innovations in decentralized finance (DeFi), nonfungible tokens, and Web3 protocols. In this review, we describe the following: key stablecoin design choices, from reserve composition to stability mechanism; legal claim against the issuer; noninterference with macroeconomic stability; and interoperability with public sector payment rails and central bank digital currencies. Last, we cover the key benefits of stablecoins in the context of real-time, low-cost programmable payments, financial inclusion, and DeFi. Expected final online publication date for the Annual Review of Financial Economics, Volume 13 is November 2022. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.

Journal articles on the topic 'Stablecoins'

Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles