The stable in stablecoins
Garth Baughman, Francesca Carapella, Jacob Gerszten, David C. Mills · FEDS Notes · 2022
Stablecoins have garnered much attention as a key part of the emerging decentralized finance ("DeFi") ecosystem, and as a potential way to pay for goods and services. Stablecoins facilitate trades on crypto exchanges, serve as the underlying asset for many crypto loans, and allow market participants to avoid inefficiencies stemming from converting back to fiat currency for crypto trades.