Runs on Stablecoins
Stablecoins are digital assets whose value is pegged to that of fiat currencies, usually the U.S. dollar, with a typical exchange rate of one dollar per unit. Their market capitalization has grown exponentially over the last couple of years, from $5 billion in 2019 to around $180 billion in 2022. Notwithstanding their name, however, stablecoins can be very unstable: between May 1 and May 16, 2022, there was a run on stablecoins, with their circulation decreasing by 15.58 billion and their market capitalization dropping by $25.63 billion (see charts below.) In this post, we describe the different types of stablecoins and how they keep their peg, compare them with money market funds—a similar but much older and more regulated financial product, and discuss the stablecoin run of May 2022. To view post: https://libertystreeteconomics.newyorkfed.org/2023/07/runs-on-stablecoins
Year of publication: |
[2023]
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Authors: | Anadu, Kenechukwu ; Azar, Pablo D ; Cipriani, Marco ; Eisenbach, Thomas M. ; Huang, Catherine ; Landoni, Mattia ; La Spada, Gabriele ; Macchiavelli, Marco ; Malfroy-Camine, Antoine ; Wang, J. Christina |
Publisher: |
[S.l.] : SSRN |
Description of contents: | Abstract [papers.ssrn.com] |
Saved in:
Extent: | 1 Online-Ressource |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | In: Liberty Street Economics Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 12, 2023 erstellt Volltext nicht verfügbar |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014353416
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