Abstract
Stablecoins are digital tokens that aim at “stabilising major currencies directly in the market for cryptoassets”. Stablecoins are built on a set of stabilization tools that classify them as tokenized funds, off-chain collateralized, on-chain collateralized and algorithmic. The paper provides a detailed overview of the different stabilization mechanisms supported by examples of international market applications. In addition, the paper distinguishes between private-issued and state-issued stablecoins and discusses current developments in Switzerland and China. Finally, the paper concludes with a discussion on the major advantages and challenges related to the implementation of stablecoins. The paper recognizes the advantages of stablecoins for the underbanked people and cross-border payments as well as acknowledges the challenges related to the establishment of an internationally coordinated legal framework and enforcement on stablecoins.
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Kondova, G., Bolliger, C. (2024). Stablecoins: Types and Applications. In: Prostean, G.I., Lavios, J.J., Brancu, L., Şahin, F. (eds) Management, Innovation and Entrepreneurship in Challenging Global Times. Lecture Notes in Management and Industrial Engineering. Springer, Cham. https://doi.org/10.1007/978-3-031-47164-3_9
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DOI: https://doi.org/10.1007/978-3-031-47164-3_9
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