Helmut Dietl Explains the Mechanisms of Stablecoins

Stablecoins are cryptocurrencies that are tied to a reference value (typically the USD). They have been developed to cope with the high volatility in crypto markets. Prof. Helmut Dietl shows different designs and the underlying mechanisms of stablecoins in his cash column. Furthermore, he demonstrates how a death spiral has led to the failure of the well-known stablecoin TerraUSD. Read the article here [in German]: https://www.cash.ch/kolumne/kryptowaehrungen-wie-stabil-sind-stablecoins-1966656