The article is devoted to stablecoins as special types of crypto-assets. The aim of the study is to characterize the economic nature and effective mechanism for managing stablecoins. Cryptocurrencies and stablecoins are similar, but still different types of digital assets, which are based on blockchain technology. The features of stablecoins are their issuance by specific issuers, as well as the availability of real provision, binding to some highly liquid underlying asset. It is proved that stablecoins, being a digital analogue of an asset, in particular national currencies, perform certain functions of money, but nevertheless they are not a new type of money. The functioning mechanism of stablecoins is determined by two elements: the stabilization mechanism and ensuring the rights of the issuer and the owner of a stablecoin. The approaches to the management of stablecoins are disclosed on the example of the management model of the global stablecoin Libra. The anonymity often found in stablecoins can be used to hide financial transparency and facilitate various financial crimes. Stable coin issuers, operators and intermediaries should fully disclose the terms of their services, and service consumers should receive detailed information about their rights and how to link the coin to the underlying asset. Stablecoin holders should be protected as much as possible from erroneous and fraudulent transactions. Financial risks associated with stablecoins require state regulation of these types of crypto assets.

Original languageEnglish
Title of host publicationEDUCATION EXCELLENCE AND INNOVATION MANAGEMENT: A 2025 VISION TO SUSTAIN ECONOMIC DEVELOPMENT DURING GLOBAL CHALLENGES
EditorsKS Soliman
PublisherIBIMA
Pages12681-12689
Number of pages9
ISBN (Print)978-0-9998551-4-1
StatePublished - 2020
Event35th International-Business-Information-Management-Association Conference (IBIMA) - Seville, Spain
Duration: 1 Apr 20202 Apr 2020

Conference

Conference35th International-Business-Information-Management-Association Conference (IBIMA)
Country/TerritorySpain
CitySeville
Period1/04/202/04/20

    Scopus subject areas

  • Economics, Econometrics and Finance(all)

    Research areas

  • Stablecoin, Crypto-Asset, Digital Token, Cryptocurrency, Currency, Security, Risks

ID: 87446801