Using granular blockchain data, we show that stablecoin currencies are price efficient but constrained by blockchain frictions, and connected to traditional markets through arbitrage and informed trading.

We estimate stablecoin devaluation risk using futures prices, showing it is driven by market volatility, transaction velocity, and redemption activity. Our findings shed light on policy proposals for transparency and oversight.

We model cryptocurrency adoption in emerging markets and show that stablecoin-based digital dollarization improves welfare, while volatile cryptocurrencies like Bitcoin impose welfare losses—explaining low adoption in cases like El Salvador.

Tweets with macroeconomic content drove USD appreciation and reduced volatility—consistent with markets interpreting Trump as a biased public signal.

Using trades between the stablecoin treasury and private investors, we quantify how improved arbitrage design stabilizes the price of the dominant stablecoin, Tether.

We investigate price‑setting in FX swaps: a one‑standard‑deviation shock in order‑flow leads to substantial price impact, driven by quarter‑end pressures and funding‑cost dispersion.

We critique the use cases for stablecoins and CBDCs, quantify the risks of stablecoin devaluation and assess the roadblocks to cross-border CBDC adoption.