What are stablecoins?

Our new In Focus paper “Stablecoins – no coins, but are they stable?” sheds light on some questions related to these assets. The term “stablecoin” is used for assets which are backed by other assets to limit their price fluctuation. The paper provides a classification of active stablecoin initiatives and explores their potential. While stablecoins have the potential to reduce price fluctuations of crypto-assets, uncertainties exist around governance and regulatory treatment of stablecoin initiatives. Find out more by reading the full paper here.