A Systematic Literature Review of Empirical Research on Stablecoins

Abstract

This study reviews the current state of empirical literature on stablecoins. Based on a sample of 22 peer-reviewed articles, we analyze statistical approaches, data sources, variables, and metrics, as well as stablecoin types investigated and future research avenues. The analysis reveals three major clusters: (1) studies on the stability or volatility of different stablecoins, their designs, and safe-haven-properties, (2) the interrelations of stablecoins with other crypto assets and markets, specifically Bitcoin, and (3) the relationship of stablecoins with (non-crypto) macroeconomic factors. Based on our analysis, we note future research should explore diverse methodological approaches, data sources, different stablecoins, or more granular datasets and identify five topics we consider most significant and promising: (1) the use of stablecoins in emerging markets, (2) the effect of stablecoins on the stability of currencies, (3) analyses of stablecoin users, (4) adoption and use cases of stablecoins outside of crypto markets, and (5) algorithmic stablecoins.