AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Stablecoins and the Dollar: Historical Parallels and Future Risks
AEA Papers and Proceedings
(pp. 53–57)
Abstract
Stablecoins have burst onto the scene, offering the potential for cheaper, faster, and smarter payments—perhaps even strengthened dollar dominance. Yet, for all the novel technology, stablecoins present a host of age-old risks that caution against such boosterism. This paper draws parallels to nineteenth-century monetary history, focusing on the chaotic free banking era (1837–1863) and the more stable national banking era (1864–1913), and finds that the current regime under the GENIUS Act is closer to the former than the latter. The paper also considers additional risks that could undermine trust in stablecoins, including illicit finance and corruption.Citation
Harris, Max, and Kenneth Rogoff. 2026. "Stablecoins and the Dollar: Historical Parallels and Future Risks." AEA Papers and Proceedings 116: 53–57. DOI: 10.1257/pandp.20261040Additional Materials
JEL Classification
- E42 Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
- G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- G28 Financial Institutions and Services: Government Policy and Regulation
- N21 Economic History: Financial Markets and Institutions: U.S.; Canada: Pre-1913