Legal problems and solutions in stablecoins : A multi-disciplinary approach applied to Euro stablecoins

Journal article


Sheehy, Benedict, Hawkins, John and Diaz-Granados Prieto, Juan Jose. (2023). Legal problems and solutions in stablecoins : A multi-disciplinary approach applied to Euro stablecoins. Review of Law and Economics. 19(1), pp. 85-98. https://doi.org/10.1515/rle-2022-0053
AuthorsSheehy, Benedict, Hawkins, John and Diaz-Granados Prieto, Juan Jose
Abstract

An increasingly important form of electronic currency is the ‘stablecoin’. Unlike other high-profile ‘cryptocurrencies’, such as Bitcoin, stablecoins claim to be matched by a corresponding amount of secure assets in a national currency to which the stablecoin can be converted at par. These crypto-assets, however, create significant legal and economic problems. Notably, issues about trust in both issuers and backing assets, the risk of runs, and particular challenges associated with public and private law regimes resist the adoption of stablecoin both in Europe and beyond. This article draws from previous experiences to analyse these issues and propose solutions. Taking a multi-disciplinary approach, the article argues that the legal and economic issues surrounding today’s stablecoins could be addressed using the lessons from prior centuries.

Keywordsstablecoins; banking; cryptocurrencies; regulation; bank runs
Year2023
JournalReview of Law and Economics
Journal citation19 (1), pp. 85-98
PublisherWalter de Gruyter
ISSN1555-5879
Digital Object Identifier (DOI)https://doi.org/10.1515/rle-2022-0053
Scopus EID2-s2.0-85149819902
Page range85-98
Publisher's version
License
All rights reserved
File Access Level
Controlled
Output statusPublished
Publication dates
Online07 Mar 2023
Publication process dates
Deposited06 Jul 2023
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https://acuresearchbank.acu.edu.au/item/8z3xx/legal-problems-and-solutions-in-stablecoins-a-multi-disciplinary-approach-applied-to-euro-stablecoins

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