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Financial and Monetary Stability Aspects of Global Stablecoins

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  2. Economics, Finance, Business & Management
  3. Credit and Capital Markets – Kredit und Kapital
  4. Vol. 53, Issue 2
  5. pp. 159–185

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Schäfer, S., Read, O. Financial and Monetary Stability Aspects of Global Stablecoins. Credit and Capital Markets – Kredit und Kapital, 53(2), 159-185. https://doi.org/10.3790/ccm.53.2.159
Schäfer, Stefan and Read, Oliver "Financial and Monetary Stability Aspects of Global Stablecoins" Credit and Capital Markets – Kredit und Kapital 53.2, 2020, 159-185. https://doi.org/10.3790/ccm.53.2.159
Schäfer, Stefan/Read, Oliver (2020): Financial and Monetary Stability Aspects of Global Stablecoins, in: Credit and Capital Markets – Kredit und Kapital, vol. 53, iss. 2, 159-185, [online] https://doi.org/10.3790/ccm.53.2.159
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Financial and Monetary Stability Aspects of Global Stablecoins

Schäfer, Stefan | Read, Oliver

Credit and Capital Markets – Kredit und Kapital, Vol. 53 (2020), Iss. 2 : pp. 159–185

2 Citations (CrossRef)

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Duncker & Humblot
DOI
https://doi.org/10.3790/ccm.53.2.159
Language
English
Pages
27
Keywords

Author Details

Prof. Dr. Stefan Schäfer, Professor of Economics, Wiesbaden Business School, Hochschule RheinMain University of Applied Sciences, Bleichstraße 44, 65183 Wiesbaden, Germany

Prof. Dr. Oliver Read, Professor of Finance, Wiesbaden Business School, Hochschule RheinMain University of Applied Sciences, Bleichstraße 44, 65183 Wiesbaden, Germany

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    2022

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    Thießen, Friedrich

    Wirtschaftsdienst, Vol. 101 (2021), Iss. 7 P.529

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References

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Abstract

Global stablecoins (GSCs) like Facebook’s Libra could prove much more instable than they might appear at first sight. Not only can their exchange rates against individual fiat currencies fluctuate substantially; theoretically, they also have the potential to replace national currencies, constitute “digital currency areas” and become the basis of a two-tier banking system with one and more GSC issuers, on the one hand, and, on the other hand, commercial banks that can create GSC deposit money. Against that background, all steps taken so far by supervisors and central banks can only be the starting point of what is necessary to effectively regulate the new normal of the world of money that is emerging.

Table of Contents

Section Title Page Action Price
Stefan Schäfer / Oliver Read: Financial and Monetary Stability Aspects of Global Stablecoins 1
Abstract 1
I. Introduction 1
II. Facebook’s Libra as a Catalyst for the Academic and Regulatory Engagement in Stablecoins 3
III. The Macroeconomics of Global Stablecoins: a Brief Survey of the Literature 6
IV. How Stable Can a Global Stablecoin Be as a “Currency”? Some Basic Considerations 1
1. Determining Changes in the GSC Exchange Rate 1
2. How Optimal is “GSC Land” as a Currency Area? 1
3. Will Central Banks or the GSC Issuer Pursue Exchange Rate Policies? 1
V. Money Creation in a GSC Environment: Future Turbulences in the Making? 1
VI. Concluding Remarks 2
References 2

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