Issue №1, 2020

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The content and economic nature of stablecoins

 

DOI: 10.34130/2070-4992-2020-1-73-82

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Ivanov V.V. – Professor, Doctor of Economics, Head of the Department of Theory of Credit and Financial Management, St. Petersburg State University, St. Petersburg, Russia, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Nurmukhametov R.K. – Associate professor, candidate of Economic sciences, the Tula branch of the Financial University under the Government of the Russian Federation, Tula, Russia, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The theme of stablecoins (stable coins), unlike cryptocurrencies, until recently, was not given much attention. However, the projects for creating stablecoins Libra (Facebook) and JPM Coin (JPMorgan Chase), the project of the largest banks in the world to create an institutional stable coin (USC), secured by bank deposits in the central bank, caused a heated discussion about the nature, types, functions and consequences of various types of stablecoins on the monetary policy of central banks and the global financial system as a whole. Research on stablecoins are analyzed, including global stablecoins, carried out by the G 7 working group, the European Central Bank, the Bank for International Settlements, the Council for Financial Stability, the Swiss financial market supervision authority FINMA, and the work of scientists and specialists on this topic, published in 2018-2019. In most studies, stablecoins are considered as a kind of cryptocurrency, which eliminates their most important drawback - high volatility by linking the market price of stablecoin to a liquid and stable asset. However, according to the authors, despite the fact that most cryptocurrencies and stablecoins are based on blockchain technology, they are different types of digital financial assets. The economic content of stablecoins is determined by the goals of their creation, the functions they perform, the types of support and its management mechanism, the nature of the relationship between the issuer and the owners of stablecoins. Stablecoins are considered as a new form of payment instruments, as a token (digital rights) secured by specific assets.

Keywords: money, digital token, cryptocurrency, crypto asset, stablecoins, central bank digital currency, collateral, risks.

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For citation: Ivanov V. V., Nurmukhametov R. K. The content and economic nature of stablecoins // Corporate governance and innovative economic development of the North: Bulletin of the Research Center of Corporate Law, Management and Venture Capital of Syktyvkar State University. 2020. No. 1. Р. 73–82. DOI: 10.34130/2070-4992-2020-1-73-82.