Stablecoins are run-optimised instruments

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Stablecoins are private digital money designed to trade at par with a fiat currency, usually the US dollar. This column argues that stablecoins are run-optimised in the sense that the promise of cheap and fast trading around the clock and across borders will lead to faster, synchronised exits that compress the timeline for stablecoin crises to minutes or hours. AI will exacerbate this.

Published on the SUERF website.