Digital Euro Association Blog / Stablecoins

Recap of the Digital Euro Association Summerfest 2022

On July 14th, 2022, the DEA organized its first Summerfest joined by 50 participants – institutional members, fellows, and experts. Most of the DEA executive team and founding members gathered in Frankfurt to join the event, hosted at the Frankfurt School of Finance & Management.

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Stabilising stablecoins: What can we learn from the collapse of TerraUSD?

Co-authored by Jannah Patchay, Claire Conby, and Jonathan Marriott In May 2022, TerraUSD (UST) – previously the third-largest stablecoin with a market cap of USD $18+ Billion – lost its peg to the US Dollar, falling almost 95 percent within a matter of days. In this article, we look a …

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How to insure against the risk of stablecoin runs

Deposit insurance would boost consumer confidence The news that TerraUSD, one of the largest algorithmic stablecoins with a market cap once above $18bn, broke its peg to the dollar has reverberated throughout financial markets. Although the variety of mechanics behind algorithmic stab …

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Stablecoin regulation in the United States

Several regulatory or enforcement measures linked to organizations engaged in stablecoin activities such as issuance, custodial services have been pursued by the US banking agencies, the Securities and Exchange Commission (SEC), US Treasury, and the Commodity Futures Trading Commissio …

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How do stablecoins maintain stability?

Stablecoins are tied to fiat currencies to make them less susceptible to price volatility and maintain their pricing stable. A computer algorithm is also used by certain stablecoins to keep their value relatively stable. As stablecoins do not require leverage to produce liquidity, the …

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Stablecoins reserves must be 100% central bank money

Regulation of new digital currencies and new payment services will take time. But regulators should now outline the core elements of regulation so that private initiative can design its commercial projects without harming public interests.

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Novi is the new Facebook Pay

I started writing about the disruption that blockchain and crypto assets would bring when Facebook first announced the intention to launch Libra in 2019 with a consortium of 28 companies to develop its distribution ecosystem. A lot has happened since then and at no point has Facebook …

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