No stablecoin has always been able to maintain parity

- Central Banking Newsdesk
- 13 Nov 2023

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Contrary to their stated design and name, not one of the 68 stablecoins investigated in a Bank for International Settlements paper has been able to maintain parity with its peg at all times.

Stablecoins, a subset of crypto assets, can be divided into those backed by fiat (20 of those analysed in the paper), backed by crypto (28), backed by commodities (7), and not backed by anything at all (13).

Tether, by far the world’s largest stablecoin, has a market capitalisation of $83 billion

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