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Opinion
Tyler Cowen

Stablecoins Won’t Be So Stable, and That’s Fine

As the cryptocurrency market matures, issuers will compete on the basis of quality, innovation and price.  

The IRL counterparts to stablecoins. 

The IRL counterparts to stablecoins. 

Photographer:  Paul Yeung/Bloomberg

Stablecoins have gone from an obscure corner of crypto to near the center of it. Major institutions, such as Mastercard, are now trying to create alternate payment networks based on stablecoin and crypto.

I am rooting for such efforts to succeed, but in the meantime I have news for you: Stablecoins aren’t always stable. Unlike a lot of critics, however, I view fluctuating prices for stablecoins as not only acceptable but also desirable.