Alexander Copestake, Cage Englander, Maria Soledad Martinez Peria, Germán Villegas-Bauer
Despite decades of effort, no cryptographic electronic cash system has yet reached mass usage in payments for goods and services. We examine whether financial market participants, in aggregate, expect stablecoins to play such a role. Using high-frequency variation in stock prices, we estimate that the passage by Congress of legislation supporting ''payment stablecoins'' reduced the market value of U.S.-listed incumbent payment firms by at least 1% or $11 billion, consistent with stablecoins increasing competition in the payments sector.
