Paper Number

1878

Abstract

Stablecoins are cryptographic digital currencies that follow a fixed or target exchange rate regime. The objective of this paper is to introduce for the IS community the concept of stablecoins in their various forms and features and investigate their relationship to Central bank Digital Currencies. This seems timely as several central banks are considering launching a cryptographic currency. The central bank digital currency (CBDC) trend gained traction following the emergence of a number of privately-issued stablecoins. This paper distinguishes amongst thirteen design dimensions that are relevant for decision makers launching stablecoins and central bank digital currencies using distributed ledger technologies. We explain each dimension in the context of prominent CBDC and stablecoin projects. Finally, future areas of CBDC and stablecoin research are elaborated upon. This research is one of the first attempts to combine information systems and monetary policy research to explain the new phenomena of stablecoin and CBDC.

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