Stablecoins as a financial innovation: Problems and prospects
Abstract. The evolution of the cryptocurrency decentralized finance (DeFi) ecosystem has led to the emergence of a need for stablecoin cryptocurrencies, positioned as sustainable settlement instruments that can compete with global fiat currencies in the future. Despite the significant increase in the volume of financial transactions carried out using stablecoins, they are currently considered poorly regulated and high-risk. An analysis of the correlation between the dynamics of the main indicators characterizing the state of the stable-coin market and changes in central bank rates showed that the trends in the stablecoin market are currently determined to a greater extent by factors in the DeFi sector and are weakly dependent on the accounting policies of central banks. The article examines the risks of the stablecoin market and discusses the main approaches to its regulation.
Keywords: stablecoins, regulation of financial innovations, decentralized finance (DeFi), digital assets, cryptocurrency instruments.
Highlights:
♦ currently, stablecoins in the DeFi ecosystem perform the same functions as global fiat currencies in the traditional financial system;
♦ the trends of the stablecoin market are weakly dependent on the accounting policies of central banks and are determined by factors in the field of DeFi;
♦ the main direction of regulation of the sphere of circulation of stablecoins is to establish a balance between the advantages of innovative financial instruments and ensuring the stability of the entire financial system.
Petr A. Romanov -Yandex LLC, Moscow, Russia, Anna A. Romanova - Orel State University named after I.S. Turgenev, Orel, Russia, Viacheslav A. Perepelkin - Samara State University of Economics, Samara, Russia