Their value is anything but stable. Page 5 of 8  In contrast, I believe that we cannot rule out the potential of stablecoins. If the digital part of the economy is migrating on to DLT based networks and platforms, money based on these technologies could end up playing an important role.
Issuers of stablecoins promise to deliver stable value of a crypto-based asset by backing these with safe assets from the traditional monetary system – e.g. US dollar assets. The business model of a stablecoin can thus be likened to that of a bank deposit, only that stablecoins are based on crypto technology, and – for now - lack proper regulation and deposit insurance.