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Stablecoins - a gateway between conventional and crypto financial universes?

In: CNB Global Economic Outlook - March 2020

Author

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  • Alexis Derviz

Abstract

Stablecoin is a digital token designed to serve as a digital currency with a stable fiat value, as a rule thanks to pegging to or backing with, one or several conventional assets. Most stablecoins are blockchain-based, which makes it easy for investors to trade them on crypto exchanges. In this article, we discuss the nature of stablecoin links to traditional finance, various motives for stablecoin demand as well as the place of central bank digital currencies (CBDC) in the crypto asset ecosystem in the presence of private stablecoins.

Suggested Citation

  • Alexis Derviz, 2020. "Stablecoins - a gateway between conventional and crypto financial universes?," Occasional Publications - Chapters in Edited Volumes, in: CNB Global Economic Outlook - March 2020, pages 12-16, Czech National Bank.
    • Handle: RePEc:cnb:ocpubc:geo2020/3
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    File URL: https://www.cnb.cz/export/sites/cnb/en/monetary-policy/.galleries/geo/geo_2020/gev_2020_03_en.pdf
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    References listed on IDEAS

    as
    1. Bullmann, Dirk & Klemm, Jonas & Pinna, Andrea, 2019. "In search for stability in crypto-assets: are stablecoins the solution?," Occasional Paper Series 230, European Central Bank.
    2. Kumhof, Michael & Noone, Clare, 2018. "Central bank digital currencies - design principles and balance sheet implications," Bank of England working papers 725, Bank of England.
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    Cited by:

    1. Alexis Derviz, 2023. "Cross-border payments at a crossroads between SWIFT and DLT," Occasional Publications - Chapters in Edited Volumes, in: CNB Global Economic Outlook - June 2023, pages 13-17, Czech National Bank.
    2. Alexis Derviz, 2021. "Decentralised finance, its prospects and limits: Is blockchain interoperability the only obstacle?," Occasional Publications - Chapters in Edited Volumes, in: CNB Global Economic Outlook - July 2021, pages 13-17, Czech National Bank.

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