Demystifying Stablecoins

Abstract

Self-sovereign stablecoins are interesting and probably here to stay; however, they face numerous regulatory hurdles from banking, financial tracking, and securities laws. For stablecoins backed by a governmental currency, the ultimate expression would be a CBDC. Since paper currency has been in steady decline (and disproportionately for legitimate transactions), a CBDC could reintroduce cash with technological advantages and efficient settlement while minimizing user fees.