Page 80 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.79, # 1, 2022, pp. 80-89

STABLECOINS AND THEIR SPECIFIC FEATURES

2
1
Khayaladdin R.Taghiyev , Ulfat F.Yusifov , Murad R.Taghiyev
3

1 Institute of Scientific Research on Economic Reforms of Ministry of Economy of
the Republic of Azerbaiijan, E-mail: khayaladdin_tagiyev@cbar.az,
xstagiyev@gmail.com

2,3 Payment Systems and Settlements Department at The Central Bank of the
Republic of Azerbaijan, E-mail: ulfat_yusifov@cbar.az, ulfatyusifov@gmail.com;
murad_tagiyev@cbar.az, murvantag@gmail.com

Received: January 10; accepted May 23, 2022; published online June 24, 2022

ABSTRACT
The study provides an in-depth analysis of the nature of virtual currencies and the
distinguishing features and types of stablecoins as one of them, as well as the factors
that distinguish them from other virtual currencies. Then the similarities and
differences between stablecoins and traditional currencies has been shown and the
essence has been explained with examples. At the same time, the essence of the
Central Bank Virtual Currency (CBDC) has been explained, its differences with
stablecoins have been shown, and the possibility of using stablecoins in the banking
system has been identified. In addition, the experience on stablecoins in United
States, the United Kingdom, China and Thailand, as well as the international card
organization VISA, has been studied, and it has been determined whether
stablecoins should be regulated by the state. At the end, the final findings of the
research and our conclusions have been reflected in the results section of the
research.

Key word: stablecoins, traditional currencies, banking system,
digitalization, virtual currencies

Jel classification: E50, E59

INTRODUCTİON
Over the past few decades, global trends in digitalization and the transfer of
databases to the financial sector have led to the joint development of finance and
technology. There have been significant changes in digital innovation in the
financial sector, driven by rapidly evolving technologies, especially information and
communication technologies in the 2010s.

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