Stablecoins – the Future of Money?

Schroders, a global asset management and wealth manager, has published a perspective piece, ‘Stablecoins: what they mean for the future of money’.

It explains and gives context about stablecoins, going as far as suggesting Central Bank Digital Currencies (CBDCs) are also a form of stablecoin. At the heart of the paper is the requirement for good regulation to unleash the full potential of stablecoins.

Financial volatility can be regarded as how much an assets value swings around the assets average price. In the US S+P 500 equities move plus or minus 21% and US grade investment bonds move 5% around their average price. In contrast Bitcoin has moved 85.15% since February 2018. It was suggested that as Bitcoin became more mature its volatility would decline, but this is not the case.