Stablecoins neither stable nor coins – paper

Central Banking Training - CBDCs and Stablecoins

A new paper argues that, despite being anchored to fiat money reserves, stablecoins do not meet the definition of money.

The paper, Taming Wildcat Stablecoins, published July 19, argues that stablecoins cannot be money because parties in a transaction cannot be mutually sure of the asset’s value during a transaction. The authors – Gary Gorton of Yale and Jeffrey Zhang of the Federal Reserve – contend stablecoins violate the “no-questions-asked” principle required of a medium of exchange.


Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: