The Influence of Stablecoin and Its Development Trend: Take Libra as an Example
Open Access
Author:
Wang, Xueyao
Area of Honors:
Finance
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Jingzhi Huang, Thesis Supervisor Brian Spangler Davis, Thesis Honors Advisor
Keywords:
stablecoin digital currency block chain crypto cryptocurrency Libra Diem Bitcoin USDT DAI Fiat-collateralized Crypto-collateralized Non-collateralized Algorithmic GUSD WIT China Finance
Abstract:
In recent years, the digital currency market has developed rapidly. Objectively, relatively stable trading media and storage methods are needed, which promotes the emergence of fiat-collateralized (centralized), crypto-collateralized (decentralized) and bon-collateralized (algorithmic) stablecoin to achieve relatively stable currency prices. Stablecoins are the product of the development of the blockchain to a certain extent. The article introduces the characteristics of stablecoins, reviews the production conditions of stablecoins, and the performance requirements of stablecoins in the commercial market.
This article takes the digital currency Libra as an example, discusses the characteristics and design concepts of stablecoins, looks forward to the application of stablecoins in the world market, analyzes the classification, influence and development trend of stablecoins, and proposes digital currencies with legal and official backed is the most suitable stable coin for China.
