Stablecoins: A Revolutionary Payment Technology with Financial Risks

Rashad Ahmed, James A. Clouse, Fabio Natalucci, Alessandro Rebucci () and Geyue Sun

No 34475, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The GENIUS Act, recently signed into law, establishes a dual federal and state regulatory framework for stablecoins, effectively segmenting the USD stablecoin market into GENIUS-compliant stablecoins and those that are not. This paper discusses the use cases and potential benefits of stablecoins in terms of payment system efficiency and costs, as well as their substitutability with money market mutual funds and bank deposits. It then analyzes the financial stability risks associated with both GENIUS-compliant and unregulated stablecoins using empirical analysis and historical case studies. It concludes by discussing the economic implications of the emergence of a large dollar stablecoin ecosystem. The discussion is supported by a new survey of expert opinions canvassed through Large Language Model (LLM) analysis of all U.S. podcast episodes on stablecoins from January 20 to July 17, 2025.

JEL-codes: E42 F33 G21 G23 O33 (search for similar items in EconPapers)
Date: 2025-11
New Economics Papers: this item is included in nep-fdg, nep-fmk, nep-mon and nep-pay
Note: AP CF EFG IFM ME PR
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