Stablecoins and the Financing of the Real Economy

Jean Barth l My, Paul Gardin and Benoit Nguyen
Authors registered in the RePEc Author Service: Jean Barthélemy

Working papers from Banque de France

Abstract: Stablecoins are crypto-assets that aim to maintain a stable value relative to a fiat currency. This paper documents one implication of their massive growth since 2020 for the financing of the real economy. The largest stablecoins manage their peg with the US dollar by holding short-term safe assets. We identify changes in the stablecoin demand for US dollardenominated commercial papers (CP) by exploiting cross-sectional and time-varying heterogeneity in the main tablecoins reserve assets policy. We show that CP issuers catered to the additional demand from stablecoins by issuing more, illustrating the implications of stablecoins for financial stability and the financing of the real economy.

Keywords: Crypto-Assets; Stablecoins; Financial Markets; Safe Assets (search for similar items in EconPapers)
JEL-codes: G14 G23 G29 (search for similar items in EconPapers)
Pages: 64 pages
Date: 2023
New Economics Papers: this item is included in nep-ban, nep-fdg, nep-mon and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:908

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