En crypto: The world wants stablecoins. But can they stay stable?

Stablecoin, a cryptocurrency designed to maintain a stable value, typically by being pegged to an external asset like the US dollar, has been gaining traction steadily. It’s a global shift driven by the promise of faster payments, cheaper transfers, and a financial system that moves at internet speed. But alongside the excitement lies a critical question, how safe is a currency that stays stable, until it doesn’t?

It’s a global shift driven by the promise of faster payments, cheaper transfers, and a financial system that moves at internet speed. But alongside the excitement lies a critical question, how safe is a currency that stays stable, until it doesn’t?

Last month, the world’s first stablecoin pegged to the yen launched in Japan, a small but significant move in a country where many consumers still prefer to use traditional payment means like cash and credit cards.

Since ...