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Licensed Unlicensed Requires Authentication Published by De Gruyter March 7, 2023

Legal Problems and Solutions in Stablecoins: A Multi-Disciplinary Approach Applied to Euro Stablecoins

  • Benedict Sheehy , John Hawkins ORCID logo EMAIL logo and Juan Diaz-Granados
From the journal Review of Law & Economics


An increasingly important form of electronic currency is the ‘stablecoin’. Unlike other high-profile ‘cryptocurrencies’, such as Bitcoin, stablecoins claim to be matched by a corresponding amount of secure assets in a national currency to which the stablecoin can be converted at par. These crypto-assets, however, create significant legal and economic problems. Notably, issues about trust in both issuers and backing assets, the risk of runs, and particular challenges associated with public and private law regimes resist the adoption of stablecoin both in Europe and beyond. This article draws from previous experiences to analyse these issues and propose solutions. Taking a multi-disciplinary approach, the article argues that the legal and economic issues surrounding today’s stablecoins could be addressed using the lessons from prior centuries.

JEL Classification: E42; G18; K22

Corresponding author: John Hawkins, Faculty of Business, Government and Law, University of Canberra, Canberra, Australia, E-mail:


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Published Online: 2023-03-07

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