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9. Stablecoins: An Alternative to CBDCs

  • 2025
  • OriginalPaper
  • Chapter
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Abstract

Stablecoins have revolutionized global finance by offering price stability and efficient cross-border transactions. This chapter explores the different types of Stablecoins, including fully reserved, crypto-collateralized, and algorithmic models, and their respective advantages and risks. It delves into the rapid adoption of Stablecoins, their use cases in remittances, trading, and decentralized finance, and the regulatory challenges they face. The chapter also examines the role of central banks in developing CBDCs as a counterbalance to Stablecoins and the potential coexistence of both in the future. Additionally, it discusses the evolving regulatory landscape for Stablecoins and the impact of key players like Tether and Circle. The chapter concludes with insights into the future of Stablecoins and their role in the broader digital finance ecosystem.
The contribution of Abubakar Idris, MBA student and EMI fellow at Cornell University is gratefully acknowledged as well as Carlos Bernós Amorós.

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Title
Stablecoins: An Alternative to CBDCs
Authors
Mark Mobius
Lourdes Casanova
Sharwari Pandit
John Ninia
Copyright Year
2025
DOI
https://doi.org/10.1007/978-3-032-02819-8_9
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