IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/21354_16.html
   My bibliography  Save this book chapter

The emerging autonomy-stability choice for stablecoins

In: Central Banks and Supervisory Architecture in Europe

Author

Listed:
  • Maarten R. C. van Oordt

Abstract

The popularity of stablecoin arrangements has triggered the attention of regulators globally (Financial Stability Board, 2020). Many have raised the importance of the solvency and transparency of stablecoin arrangements as well as the importance of their compliance with regulations aimed at financial consumer protection, investor protection, operational resilience and the prevention of money-laundering, terrorist financing and other illicit activities. Less attention has been raised to the fact that stablecoin transactions are processed by decentralized networks that may operate outside the sphere of control of the relevant authorities.This chapter focuses on the importance for the issuer of a fiat-backed stablecoin to maintain reliable access to the domestic payment system of the jurisdiction that issues the fiat currency in order to maintain a stable peg. The chapter provides several empirical illustrations that show how substantial deviations of the one-to-one peg could occur for the most prominent fiat-backed stablecoin when its access to the domestic payment system was interrupted. The chapter then discusses the implications for the extent to which regulators will be able exercise control over stablecoin issuers.

Suggested Citation

  • Maarten R. C. van Oordt, 2022. "The emerging autonomy-stability choice for stablecoins," Chapters, in: Robert Holzmann & Fernando Restoy (ed.), Central Banks and Supervisory Architecture in Europe, chapter 16, pages 194-204, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:21354_16
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/edcoll/9781802208894/9781802208894.00024.xml
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sohn, Stefanie, 2024. "Consumer perceived risk of using autonomous retail technology," Journal of Business Research, Elsevier, vol. 171(C).

    More about this item

    Keywords

    Economics and Finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:21354_16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.