Stablecoins are booming in popularity, but they’re not all built the same. By not relying on potentially opaque issuers, decentralized stablecoins are showing that they have the resiliency, transparency and robust risk management to become the payment layer for the internet.
The rise of stablecoins poses complex and novel cross- border legal challenges. With the right model-law approach, policymakers can can maintain stable value and protect consumers while safeguarding monetary integrity and financial stability.
In theory, blockchain technology enables the creation of a financial system that is independent of centralized
intermediaries or other single points of failure. In practice, the stablecoins used to transact on public blockchains heavily depend on their issuers or small groups of administrators. The Frankencoin seeks to enable the creation of money without banks or other trusted third parties.
Many early cryptocurrency promoters trumpeted the end of fiat cash and a new form of finance. But the rise of stablecoins has shown the old US dollar is still dominant — and point toward a new kind of money for the future global economy.
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