【Author】
Hoang, Lai T.; Baur, Dirk G.
【Source】EUROPEAN JOURNAL OF FINANCE
【Abstract】This paper analyzes the stability of stablecoins and proposes a framework to test for absolute and relative stability of stablecoins. Based on high-frequency data, we find strong evidence of excess price variations. While Bitcoin is a likely source of this excess volatility because stablecoin returns, volatility and volumes are highly correlated with corresponding Bitcoin time-series, we also demonstrate through a quasi-natural experiment that stablecoins increase the trading volume of Bitcoin. The findings suggest stablecoins play a key role in cryptocurrency markets.
【Keywords】Stablecoins; Bitcoin; cryptocurrencies; tether; financial stability; safe assets
【文献类型】Article; Early Access
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