No stablecoin has always been able to maintain parity – paper
Authors warn there is no guarantee that issuers can redeem stablecoins on demand
Contrary to their stated design and name, not one of the 68 stablecoins investigated in a Bank for International Settlements paper has been able to maintain parity with its peg at all times.
Stablecoins, a subset of crypto assets, can be divided into those backed by fiat (20 of those analysed in the paper), backed by crypto (28), backed by commodities (7), and not backed by anything at all (13).
Tether, by far the world’s largest stablecoin, has a market capitalisation of $83 billion
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