Overview and Risk Frames
Systemic risk involves widespread funding or settlement failures; operational risk involves specific platforms and ramps. Clear framing separates platform design issues from broader financial stability questions.
Reserves and Redemption Design
High-quality, short-duration reserves and clear redemption policies reduce run dynamics; duration mismatches amplify stress.
On/Off-Ramps and Liquidity
Diverse, well-capitalized ramps prevent bottlenecks; single-points-of-failure increase contagion risk.
Regulatory Scenarios
Restrictions on rewards shift designs (rebates/discounts) rather than demand; bans can slow retail but often spare enterprise flows.
User Behavior and Rate Cycles
Mobility rises with rate spreads and UX advantages; falls when spreads narrow and ramps slow.
Expert Opinions: A Synthesis
Most experts see crisis risk as contingent: bad designs and poor ramps increase risk; good reserves and diverse ramps mitigate it.
Conclusion
Stablecoins do not inherently trigger crises; specific design and market structures determine risk. Incentivize transparency and high-quality reserves.