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From Tether to Libra: Stablecoins, Digital Currency and the Future of Money

Author

Listed:
  • Alexander Lipton
  • Aetienne Sardon
  • Fabian Schar
  • Christian Schupbach

Abstract

This paper provides an overview on stablecoins and introduces a novel terminology to help better identify stablecoins with truly disruptive potential. It provides a compact definition for stablecoins, identifying the unique features that make them distinct from previously known payment systems. Furthermore, it surveys the different use cases for stablecoins as well as the underlying economic incentives for creating them. Finally, it outlines critical regulatory considerations that constrain stablecoins and summarizes key factors that are driving their rapid development.

Suggested Citation

  • Alexander Lipton & Aetienne Sardon & Fabian Schar & Christian Schupbach, 2020. "From Tether to Libra: Stablecoins, Digital Currency and the Future of Money," Papers 2005.12949, arXiv.org.
    • Handle: RePEc:arx:papers:2005.12949
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    File URL: http://arxiv.org/pdf/2005.12949
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    References listed on IDEAS

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    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.
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    Cited by:

    1. Louis Bertucci & Sébastien Choukroun & Julien Prat, 2023. "Enjeux et promesses des stablecoins décentralisés," Revue d'économie financière, Association d'économie financière, vol. 0(1), pages 73-90.
    2. Qin Wang & Guangsheng Yu & Shiping Chen, 2023. "Cryptocurrency in the Aftermath: Unveiling the Impact of the SVB Collapse," Papers 2311.10720, arXiv.org.
    3. Elena Vladimirovna Travkina & Alim Borisovich Fiapshev & Marianna Tolevna Belova, 2022. "Stablecoin-Based Digital Trading and Investment Platforms and Their Potential in Overcoming Sanctions Restrictions," Economies, MDPI, vol. 10(10), pages 1-10, October.
    4. Haoqian Zhang & Cristina Basescu & Bryan Ford, 2020. "Economic Principles of PoPCoin, a Democratic Time-based Cryptocurrency," Papers 2011.01712, arXiv.org.

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