Search engine for discovering works of Art, research articles, and books related to Art and Culture
Javascript must be enabled to continue!
Stablecoins: A Revolutionary Payment Technology with Financial Risks
View through CrossRef
The GENIUS Act, recently signed into law, establishes a dual federal and state regulatory framework for stablecoins, effectively segmenting the USD stablecoin market into GENIUS-compliant stablecoins and those that are not. This paper discusses the use cases and potential benefits of stablecoins in terms of payment system efficiency and costs, as well as their substitutability with money market mutual funds and bank deposits. It then analyzes the financial stability risks associated with both GENIUS-compliant and unregulated stablecoins using empirical analysis and historical case studies. It concludes by discussing the economic implications of the emergence of a large dollar stablecoin ecosystem. The discussion is supported by a new survey of expert opinions canvassed through Large Language Model (LLM) analysis of all U.S. podcast episodes on stablecoins from January 20 to July 17, 2025.<br><br>Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at <a href="http://www.nber.org/papers/w34475" TARGET="_blank">www.nber.org</a>.<br>
Title: Stablecoins: A Revolutionary Payment Technology with Financial Risks
Description:
The GENIUS Act, recently signed into law, establishes a dual federal and state regulatory framework for stablecoins, effectively segmenting the USD stablecoin market into GENIUS-compliant stablecoins and those that are not.
This paper discusses the use cases and potential benefits of stablecoins in terms of payment system efficiency and costs, as well as their substitutability with money market mutual funds and bank deposits.
It then analyzes the financial stability risks associated with both GENIUS-compliant and unregulated stablecoins using empirical analysis and historical case studies.
It concludes by discussing the economic implications of the emergence of a large dollar stablecoin ecosystem.
The discussion is supported by a new survey of expert opinions canvassed through Large Language Model (LLM) analysis of all U.
S.
podcast episodes on stablecoins from January 20 to July 17, 2025.
<br><br>Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at <a href="http://www.
nber.
org/papers/w34475" TARGET="_blank">www.
nber.
org</a>.
<br>.
Related Results
‘Pile N Dump’ Volatility Indicator for Stablecoins
‘Pile N Dump’ Volatility Indicator for Stablecoins
Stablecoins are the class of cryptocurrencies that are designed and expected to track value of a fiat currency, popularly the US Dollar. They aim to provide a means of transaction ...
Wirtschaftlichkeitsbetrachtungen von Stablecoins in der Schweiz
Wirtschaftlichkeitsbetrachtungen von Stablecoins in der Schweiz
Vor einigen Jahren hat die Herausgabe von Stablecoins in der Schweiz floriert. Lücken im geltenden Recht und Unsicherheiten, welche die Handhabung des Regulators betreffen, haben d...
Stablecoins: Mechanisms, Applications, and Regulation
Stablecoins: Mechanisms, Applications, and Regulation
As a type of cryptocurrency designed to maintain a stable value, stablecoins have been attracting more and more attention over the last decade, particularly due to their low cost a...
Payment Date Prediction
Payment Date Prediction
Payment date prediction is a critical process for businesses and financial institutions to manage their cash flow and financial planning effectively. Accurately forecasting the dat...
Stablecoins and Differences in Their Volatilities
Stablecoins and Differences in Their Volatilities
<div>
Stablecoins, digital assets pegged to fiat currencies such as the U.S. dollar, are intended to
</div>
<div>
provide a stable store of value within the vol...
Yield Bearing Stablecoins: Market Segment Analysis and Regulatory Approaches
Yield Bearing Stablecoins: Market Segment Analysis and Regulatory Approaches
Yield-bearing stablecoins represent one of the fastest-growing segments in the stablecoin market, merging the stability of digital cash with DeFi-native yield generation. From just...
Leveraging Ponzi-like Designs in Stablecoins
Leveraging Ponzi-like Designs in Stablecoins
Stablecoin is a medium of exchange with stable value in the world of
decentralized finance (DeFi). In which, algorithmic stablecoins are one
special type of stablecoins that are no...
Examining an Islamic Financial Inclusivity and Its Impact on Fundamental Economic Variables in Indonesia (An Approach of Static Panel Data Analysis)
Examining an Islamic Financial Inclusivity and Its Impact on Fundamental Economic Variables in Indonesia (An Approach of Static Panel Data Analysis)
ABSTRACT
Previous studies mostly measured sharia financial inclusion using an index consisting of three dimensions: accessibility, availability, and usage. This research develops i...