"Stablecoin" TAG

Algorithmic Stablecoins: Value Propositions and Performance Indicators Beyond Peg Maintenance
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Prior to the highly-publicized increased institutional interest in Bitcoin the blockchain industry is currently experiencing, much of the general public’s attention being paid to distributed ledger-based assets was drawn by stablecoins. The rapidly expanding asset class has drawn both praise and resistance from those assessing its potential role in the greater financial ecosystem, with proponents...
Crypto integration among banks: Does the OCC’s recent letter open the door?
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In an interpretive letter published on January 4th, the Office of the Comptroller of the Currency (OCC), an independent Treasury agency responsible for regulating US national banks, outlined how banks and savings associations could interact with stablecoins and blockchain networks. Among other points, the letter, whose language leaves open narrower and broader readings, states that...
Contextualizing the STABLE Act
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In the summer of 2019, Mark Zuckerberg testified before the U.S. House of Representatives, facing nearly-unanimous and atypically bipartisan criticism from legislators related to Facebook’s leading role in the development of the Libra stablecoin. The Libra network and digital asset—whose credentials as a blockchain and cryptoasset, respectively, have been perhaps appropriately criticized—were intended to facilitate...
MakerDAO and Community-led Governance
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The Maker announcement suggests the project’s security and long term sustainability depend on successfully transitioning to community-led governance and was quickly followed April 6th with the circulation of 13 ‘Maker Improvement Proposals’(MIPs) designed to elicit discussion and counter-proposals on the foundational processes for its governance system. The Maker Foundation’s plans for leadership transition are notable for several reasons.On...
Flipside’s Analysis of Stablecoin Use
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Earlier this month, the blockchain and cryptoasset analytics company, Flipside Crypto published an analysis of three popular stablecoins, Tether (USDT), USD Coin (USDC), and Dai (DAI), categorizing how people used the stablecoins in Q1 2020. The analysis focused on the on-chain flows of the three stablecoins, looking exclusively at transfers between addresses on Ethereum, thereby...
COVID-19 Crisis Highlights the Potential Economic Benefits of CBDCs
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There have been several advancements and updates regarding central bank digital currency (CBDC) initiatives. In China, it was reported on March 24 that the People’s Bank of China (PBoC) has reportedly completed the core development of its CBDC and is in the process of preparing legislation for its release. Meanwhile, in the U.S., the House of Representatives attempted...
Understanding the Paxos Gold Stablecoin
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Key Takeaways PAXG represents the latest, and perhaps most appealing of an extended history of efforts to create digital gold products. The typical economic structures of stablecoins, where interest on deposited funds provide the operating margins for stablecoin promoters, are upended in the context of a physical commodity requiring the payment of storage fees. This...
Tether, a Pathbreaking yet Flawed Element of Crypto Market Infrastructure
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Introduction Amongst the stablecoins in today’s cryptocurrency ecosystem, none are as widely known as Tether, a cryptocurrency based on the Bitcoin blockchain, via the Omni Layer, that is fully-backed in a one-to-one ratio with the United States Dollar (USD). Tether is prominent both as the earliest instance of a stablecoin–defined as a cryptocurrency maintaining a...
The Cryptoeconomics of Seigniorage Shares Stablecoins: Basis and Carbon
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The topic of stablecoins has occasioned a flurry of discussion and activity in late 2017 and early 2018, not unsurprising given the potential of stablecoins to allow the expansion of the crypto community in a number of important ways. This articles considers two developing stablecoin projects that fall within the seigniorage shares category of stablecoins,...