According to a study supported by the University of California at Berkeley, the issue of stablecoins does not lead to an increase in the price of BTC and other crypto assets.
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Richard Lyons, Director of innovation and entrepreneurship at the University of California, Berkeley, and Ganesh Viswanath-Natraj, associate Professor of Finance at the University of Warwick school of business, found that stablecoins serve as tools for investors to respond to market movements and do not represent incentives for inflation or price collapse.
Analysis of trading data shows that investors use stablecoins as a means of preserving value during periods of risk or price decline. The researchers also found that if the price of a stablecoin ceases to match the price of the asset that provides it, arbitrage trading begins.
The question of whether the issue of stablecoins affects the prices of cryptocurrencies has been discussed for a long time. In July 2018, John Griffins of the University of Texas at Austin and Amin Shams of the Ohio state University concluded that stablecoin emissions “occur during periods of market downturn and provoke a significant increase in the price of bitcoin.” In addition, the study
it was claimed that during 2017, Tether seriously affected the price of bitcoin by issuing the usdt stablecoin.
Four months after the publication of the Griffins and Shams study the us Department of justice began
investigation into Tether and Bitfinex. The Ministry focused on the investigation into the manipulation of the cryptocurrency market using the stablecoin Tether (USDT).
However, the findings of the study of Lyons and Mr. T. S. Vishwanath of Nutria contradict the conclusions reached by Griffin and Shams that claim:
“We have not found systematic evidence of the impact of stablecoin issuance on cryptocurrency prices. Rather, our evidence supports alternative views, namely that stablecoin is constantly serving as a safe haven in the digital economy.”
Stablecoins continue to attract the attention of regulators. Recently, the financial stability Board (FSB), created by the G20 countries, presented
General recommendations for regulating stablecoins.