The Issuance Models And Impact Factors On The Operational Stability Of Digital Stable Coins

In order to solve the problem of price fluctuations of unanchored digital currencies,the concept of Stable Coin is proposed.As a new concept proposed in the field of digital currency,Stable Coin is derived from unanchored digital currency and has a stable anchor value.In recent years,Stable Coin have developed rapidly around the world.The world’s first Stable Coin was the USDT issued by the US Tether company in 2014,which is currently the largest Stable Coin.Since then,various stable coins have come out one after another.As of mid-October 2021,the market value of all existing Stable Coin in the world has exceeded 134 billion U.S.dollars.Among them,the total market value of USDC has exceeded 73 billion,an increase of 6% as of September,and DAI has risen by 27.3% in30 days,the most rapid increase.This article first sorts out the connotation,theoretical origins and issuance modes of Stable Coin.According to different value anchors,Stable Coin issuance modes are divided into legal currency mortgage issuance mode,digital mortgage issuance mode,and algorithm rule issuance mode.Click here Select seven representative stable currencies in the market as the research objects,namely USDT,TUSD,GUSD,PAX,USDC;DAI;Nu Bits,to analyze the advantages and disadvantages of the system.Secondly,by analyzing the market performance of Stable Coin,the Stable Coin in each issuance model are grouped with the time series of SDR prices for co-integration testing,and the longterm equilibrium relationship among them is discussed.Researched the influencing factors of digital Stable Coin such as the U.S.dollar index(DX),the London Interbank Offered U.S.dollar interest rate(LIBORUS),the core PCE inflation rate(PCEIR)predicted by major US economic indicators,and the U.S.S&P 500 yield(SPY),etc.,It fills the academic gap and has certain theoretical significance.Finally,it puts forward development suggestions on the development model,application scenarios,and policy functions of my country’s legal digital currency DC/EP.The conclusions of this article are as follows: First,compare the advantages and disadvantages of different Stable Coin issuance models.The legal currency mortgage issuance model is the most mature and Stable Coin,but it is difficult to become an independent currency system and does not have independence;the digital asset mortgage model also lacks a stable source of intrinsic value,so it does not fundamentally solve the stability needs of digital currency;Algorithmic rules model Stable Coin have certain efficiency and cost advantages when the market is favorable.However,if investors look down on Stable Coin,smart algorithms will continue to reduce the supply of Stable Coin in response to investors’ tendency,causing greater fluctuations Even an avalanche.Second,discuss the factors affecting Stable Coin.The Stable Coin issued only by the legal currency mortgage has the same influencing factors as the Stable Coin issued together with the legal currency mortgage and digital mortgage(that is,the first two Stable Coin issuance models return together).Among them,DX and PCEIR will have a negative effect on the price of Stable Coin,while LIBORUS and SPY will have a positive effect.The regression results that include the issuance model of algorithmic rules all show that the influencing factors are PCEIR,the growth rate of transaction volume(GRV)and the growth rate of market capitalization(GRMC),indicating that Stable Coin are influencing factors and are susceptible to the issuance of algorithmic rules.Third,the influence of the issuance model on the influencing factors further shows that the influence of the algorithm rule issuance model on the influencing factors of Stable Coin is much greater than the other two issuance models,so that it is contrary to currency functions and market laws.The innovations of this article are as follows: First,according to the value anchor classification of different Stable Coin,Johansen cointegration test is used for comparison and comparison,and its stability is discussed from the market dimension.Secondly,with seven Stable Coin of three issuing modes as the research objects,conduct empirical research on Stable Coin and study the factors affecting Stable Coin.It also analyzes the adverse effects of different models of Stable Coin issuance on the influencing factors,and further analyzes the stability of the issuance model.Finally,it puts fo;1。rward targeted sugge;1。stions on the deve;1。lopment model,appli;1。cation scenarios,an;1。d poli;1。cy effects of my cou;1。ntry’s legal digital currency DC/EP.