Based on the author’s study and research in the virtual currency course at Columbia University’s Pre-College Summer Program,combined with discussions with American virtual currency experts,this paper systematically ...Based on the author’s study and research in the virtual currency course at Columbia University’s Pre-College Summer Program,combined with discussions with American virtual currency experts,this paper systematically analyzes the definition,operating mechanisms,types,regulatory policies,application scenarios,potential risks,future development,and relationship with the US dollar of stablecoins.The article uses ten core questions as the main thread,comprehensively exploring the position and prospects of stablecoins in the global digital financial landscape,aiming to provide readers with a panoramic understanding from concept to trend.展开更多
We examine the interactions between stablecoins,Bitcoin,and a basket of altcoins to uncover whether stablecoins represent the investors’demand for trading and investing into cryptoassets or rather play a role as boos...We examine the interactions between stablecoins,Bitcoin,and a basket of altcoins to uncover whether stablecoins represent the investors’demand for trading and investing into cryptoassets or rather play a role as boosting mechanisms during cryptomarkets price rallies.Using a set of instruments covering the standard cointegration framework as well as quantile-specific and non-linear causality tests,we argue that stablecoins mostly reflect an increasing demand for investing in cryptoassets rather than serve as a boosting mechanism for periods of extreme appreciation.We further discuss some specificities of 2017,even though the dynamic patterns remain very similar to the general behavior.Overall,we do not find support for claims about stablecoins being bubble boosters in the cryptoassets ecosystem.展开更多
How does stablecoin design affect market behavior during turbulent periods?Stable-coins attempt to maintain a“stable”peg to the US dollar,but do so with widely varying structural designs.The spectacular collapse of ...How does stablecoin design affect market behavior during turbulent periods?Stable-coins attempt to maintain a“stable”peg to the US dollar,but do so with widely varying structural designs.The spectacular collapse of the TerraUSD(UST)stablecoin and the linked Terra(LUNA)token in May 2022 precipitated a series of reactions across major stablecoins,with some experiencing a fall in value and others gaining value.Using a Baba,Engle,Kraft and Kroner(1990)(BEKK)model,we examine the reaction to this exogenous shock and find significant contagion effects from the UST collapse,likely partially due to herding behavior among traders.We test the varying reactions among stablecoins and find that stablecoin design differences affect the direction,magnitude,and duration of the response to shocks.We discuss the implications for stablecoin developers,exchanges,traders,and regulators.展开更多
文摘Based on the author’s study and research in the virtual currency course at Columbia University’s Pre-College Summer Program,combined with discussions with American virtual currency experts,this paper systematically analyzes the definition,operating mechanisms,types,regulatory policies,application scenarios,potential risks,future development,and relationship with the US dollar of stablecoins.The article uses ten core questions as the main thread,comprehensively exploring the position and prospects of stablecoins in the global digital financial landscape,aiming to provide readers with a panoramic understanding from concept to trend.
基金Support from the Charles University PRIMUS program(Project PRIMUS/19/HUM/17)the Czech Science Foundation(Project 20-17295S)is highly appreciated.
文摘We examine the interactions between stablecoins,Bitcoin,and a basket of altcoins to uncover whether stablecoins represent the investors’demand for trading and investing into cryptoassets or rather play a role as boosting mechanisms during cryptomarkets price rallies.Using a set of instruments covering the standard cointegration framework as well as quantile-specific and non-linear causality tests,we argue that stablecoins mostly reflect an increasing demand for investing in cryptoassets rather than serve as a boosting mechanism for periods of extreme appreciation.We further discuss some specificities of 2017,even though the dynamic patterns remain very similar to the general behavior.Overall,we do not find support for claims about stablecoins being bubble boosters in the cryptoassets ecosystem.
基金funding agencies in the public,commercial,or not-for-profit sectors.Luca Galati was founded by the Rozetta Institute(formerly CMCRC-SIRCA),55 Harrington St,The Rocks,Sydney,NSW 2000,Australia.
文摘How does stablecoin design affect market behavior during turbulent periods?Stable-coins attempt to maintain a“stable”peg to the US dollar,but do so with widely varying structural designs.The spectacular collapse of the TerraUSD(UST)stablecoin and the linked Terra(LUNA)token in May 2022 precipitated a series of reactions across major stablecoins,with some experiencing a fall in value and others gaining value.Using a Baba,Engle,Kraft and Kroner(1990)(BEKK)model,we examine the reaction to this exogenous shock and find significant contagion effects from the UST collapse,likely partially due to herding behavior among traders.We test the varying reactions among stablecoins and find that stablecoin design differences affect the direction,magnitude,and duration of the response to shocks.We discuss the implications for stablecoin developers,exchanges,traders,and regulators.
