Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel
Abstract: Stablecoins---digital currencies pegged to an external reference (e.g., the US dollar)---play an increasingly important role in transacting digital currencies. However, with a peg to an external reference comes the risk that the peg breaks and, akin to runs on other financial instruments, the risk of a stablecoin run.
File(s): File format is text/html https://www.federalreserve.gov//econres/notes/feds-notes/runs-on-algorithmic-stablecoins-evidence-from-iron-titan-and-steel-20220602.htm
Part of Series: FEDS Notes
Publication Date: 2022-06-02