By: George Calle, Diana Barrero Zalles
Stablecoins are blockchain-based payment instruments that aim to eliminate the volatility of cryptocurrencies. So far, stablecoins have seen significant use within the cryptocurrency ecosystem, specifically as a volatility hedge, a tool for tax evasion and a vehicle for payments outside the banking system. Yet stablecoins have also been proposed as a payments solution for businesses. This paper provides answers why businesses and financial institutions do not currently use stablecoins, and proposes how these instruments or future iterations may fit into the existing financial system.
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