An Examination of Stablecoin Reporting, Economic Impact & Policy Forecasts

Abstract

This research paper examines and puts forward an objective analysis of one of the fastest-growing sectors of the cryptoasset space; stablecoins. Since being introduced to the broader marketplace following the initial bitcoin and ICO bubble this subset of the cryptoasset class has rapidly grown to be worth in excess of $100 billion. In the face of this rapid growth, however, the reporting and compliance requirements for this space have struggled to keep pace. The goals of this research are twofold. Firstly, it reviews and analyzes the current state of the stablecoin marketplace and ecosystem, including a review of regulatory actions and headline-generating failures. Secondly, it puts forward and establishes a framework and guiding rules for how stablecoins are treated, regulated, and utilized moving forward. Practitioners and researchers alike will be able to glean insights from this research and construct actionable business plans as a result.

Keywords: stablecoins, cryptoassets, blockchain, central bank digital currencies

JEL Classification: g23,g28