Stablecoins

Stablecoins are an emerging application of blockchain technology that tether the value of a cryptocurrency token to a traditional, ‘real-world’ asset (most commonly the American dollar). As stablecoin adoption grows and this technology becomes increasingly interconnected with traditional finance infrastructure (banks, payment companies, federal reserves, etc.), this project will explore the current methodology for the development of the underlying blockchain technology used in stablecoins, with an emphasis on identifying who possesses control of this process and any associated security risks. Existing governance research in this space generally focuses on legal frameworks and monetary policy considerations, and there is a research gap on the governance of the development of the technology that is core to stablecoins. This research closely relates to the Digital Policy Hub’s core research areas of digital economy, governance frameworks, and national security and democracy, as stablecoin technology threatens to become a major part of the future digital economy. Ultimately, this work will help governments and governing bodies understand the risks associated with the current process of this technology development and may advise the future development of safe technology development standards for stablecoins.

Faculty Supervisor:

Andreas Veneris

Student:

Partner:

Centre for International Governance Innovation

Discipline:

Engineering

Sector:

Education; Professional, scientific and technical services

University:

University of Toronto

Program: