The asset-backing risk of stablecoin trading: The case of Tether

AICPA. (2019). Accounting for auditing of digital assets. John Wiley & Sons.Search in Google Scholar

AICPA. (2020). Blockchain fundamentals for accounting and finance professionals certificate. John Wiley & Sons.Search in Google Scholar

Almeida, J., & Gonçalves, T. C. (2022). Portfolio diversification, hedge and safe-haven properties in cryptocurrency investments and financial economics: A systematic literature review. Journal of Risk and Financial Management, 16(1), 3. https://doi.org/10.3390/jrfm16010003Search in Google Scholar

Alonso, S. L. N., Fernández, M. Á. E., Bas, D. S., & Rico, C. P. (2024). El Salvador: An analysis of the monetary integration law and the bitcoin law. Brazilian Journal of Political Economy, 44(1), 189–209. https://doi.org/10.1590/0101-31572024-3459Search in Google Scholar

Alvarez-Pincay, D. E., Toala-Bozada, S. P., Delgado-Gutierrez, Z. M., Peñafiel-Loor, J. F. Lucio-Pillasagua, A. del J., & Saltos-Buri, V. del R. (2018). Sistemas de contabilidad con criptomonedas: Retos para la auditoría pública tradicional. Polo Del Conocimiento, 3(8), 196. https://doi.org/10.23857/pc.v3i8.607Search in Google Scholar

Andryushin, S. A., & Kochergin, D. A. (2022). Stablecoins as a new form of digital money: Emission, circulation, regulation and risk management. Voprosy Ekonomiki, 6, 42–68. https://doi.org/10.32609/0042-8736-2022-6-42-68Search in Google Scholar

Arner, D. W., Auer, R., & Frost, J. (2020). Stablecoins: Risks, potential and regulation. BIS Working Paper, 2021/57. https://doi.org/10.2139/ssrn.3979495Search in Google Scholar

Arslanian, H. (2022). Stablecoins. In H. Arslanian, The book of crypto (pp. 149–170). Springer. https://doi.org/10.1007/978-3-030-97951-5_7Search in Google Scholar

Auer, R., & Tercero-Lucas, D. (2022). Distrust or speculation? The socioeconomic drivers of U.S. cryptocurrency investments. Journal of Financial Stability, 62, 101066. https://doi.org/10.1016/j.jfs.2022.101066Search in Google Scholar

Baker, H. K., Benedetti, H., Nikbakht, E., & Smith, S. S. (2023). The emerald handbook on cryptoassets: Investment opportunities and challenges. Emerald Group Publishing.Search in Google Scholar

Barry, J. (2020). Addressing the regulatory, supervisory and oversight challenges raised by global stablecoin arrangements. Bank for International Settlements: Financial Stability Board. https://www.fsb.org/wp-content/uploads/State-Street-Bank.pdf (p. 2).Search in Google Scholar

Baughman, G., & Flemming, J. (2023). Global demand for basket-backed stable-coins. Review of Economic Dynamics, 48, 244–264. https://doi.org/10.1016/j.red.2022.05.003Search in Google Scholar

Benedetti, H., & Smith, S. S. (2022, June 15). An examination of stablecoin reporting. Economic Impact & Policy Forecasts.Search in Google Scholar

Berentsen, A., & Schär, F. (2019). Stablecoins: The quest for a low-volatility cryptocurrency. The Economics of Fintech and Digital Currencies, 65–75.Search in Google Scholar

Bhambhwani, S. M., & Huang, A. H. (2023, November). Auditing decentralized finance. The British Accounting Review, 101270. https://doi.org/10.1016/j.bar.2023.101270Search in Google Scholar

BOE. (2002). Reglamento (CE) No 1606/2002 del Parlamento Europeo y del Consejo de 19 de julio de 2002 relativo a la aplicación de normas internacionales de contabilidad https://www.boe.es/doue/2002/243/L00001-00004.pdfSearch in Google Scholar

Briola, A., Vidal-Tomás, D., Wang, Y., & Aste, T. (2023). Anatomy of a stablecoin’s failure: The Terra-Luna case. Finance Research Letters, 51, 103358. https://doi.org/10.1016/j.frl.2022.103358Search in Google Scholar

Bullmann, D., Klemm, J., & Pinna, A. (2019, August). In search for stability in crypto-assets: Are stablecoins the solution? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3444847Search in Google Scholar

Catalini, C., & Shah, N. (2021). Setting standards for stablecoin reserves. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3970885Search in Google Scholar

Chen, H. Y. (2020, September 8). Stablecoins, cryptocurrencies, and blockchain. Global FinTech Review. https://doi.org/10.21428/ce41c397.1a7541e2Search in Google Scholar

Chowdhury, N. (2019). Inside blockchain, bitcoin, and cryptocurrencies. Auerbach Publications. https://doi.org/10.1201/9780429325533Search in Google Scholar

Clark, J., Demirag, D., & Moosavi, S. (2020). Demystifying Stablecoins. Queue, 18(1), 39–60. https://doi.org/10.1145/3387945.3388781Search in Google Scholar

Clements, R. (2021, October 28). Built to fail: The inherent fragility of algorithmic stablecoins. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3952045Search in Google Scholar

Coccaro, A. M. (2021). Implicancias contable de las criptomonedas. Cuestionar.Search in Google Scholar

CoinMarketCap. (2024, January). Cryptocurrency prices, charts and market capitalizations. https://coinmarketcap.com/coins/Search in Google Scholar

Conrad, C., Custovic, A., & Ghysels, E. (2018). Long- and short-term cryptocurrency volatility components: A GARCH-MIDAS analysis. Journal of Risk and Financial Management, 11(2), 23. https://doi.org/10.3390/jrfm11020023Search in Google Scholar

Echarte Fernández, M. Á., Náñez Alonso, S. L., Reier Forradellas, R., & Jorge-Vázquez, J. (2022). From the Great Recession to the COVID-19 pandemic: The risk of expansionary monetary policies. Risks, 10(2), 23. https://doi.org/10.3390/risks10020023Search in Google Scholar

Eichengreen, B., T. Nguyen, M., & Viswanath-Natraj, G. (2023, May 26). Stablecoin devaluation risk. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4460515Search in Google Scholar

Elsayed, A. H., Gozgor, G., & Yarovaya, L. (2022). Volatility and return connectedness of cryptocurrency, gold, and uncertainty: Evidence from the cryptocurrency uncertainty indices. Finance Research Letters, 47, 102732. https://doi.org/10.1016/j.frl.2022.102732Search in Google Scholar

Ferreira, A. (2021). The curious case of stablecoins—balancing risks and rewards? Journal of International Economic Law, 24(4), 755–778. https://doi.org/10.1093/jiel/jgab036Search in Google Scholar

Giudici, P., Leach, T., & Pagnottoni, P. (2022). Libra or Librae? Basket based stable-coins to mitigate foreign exchange volatility spillovers. Finance Research Letters, 44, 102054. https://doi.org/10.1016/j.frl.2021.102054Search in Google Scholar

Grobys, K., Junttila, J., Kolari, J. W., & Sapkota, N. (2021). On the stability of stable-coins. Journal of Empirical Finance, 64, 207–223. https://doi.org/10.1016/j.jemp-fin.2021.09.002Search in Google Scholar

Hampl, F., & Gyönyörová, L. (2021). Can fiat-backed stablecoins be considered cash or cash equivalents under International Financial Reporting Standards rules?. Australian Accounting Review, 31(3), 233–255 https://doi.org/10.1111/AUAR.12344Search in Google Scholar

Hoang, L. T., & Baur, D. G. (2021). How stable are stablecoins? The European Journal of Finance, 1–17. https://doi.org/10.1080/1351847x.2021.1949369Search in Google Scholar

Hsieh, S. F., & Brennan, G. (2022). Issues, risks, and challenges for auditing crypto asset transactions. International Journal of Accounting Information Systems, 46, 100569. https://doi.org/10.1016/j.accinf.2022.100569Search in Google Scholar

Husna, A., & Satria, I. (2019). Effects of return on asset, debt to asset ratio, current ratio, firm size, and dividend payout ratio on firm value. International Journal of Economics and Financial Issues, 9(5), 50–54. https://doi.org/10.32479/ijefi.8595Search in Google Scholar

IASB. (2019). Tenencia de criptomonedas. https://www.ifrs.org/content/dam/ifrs/supporting-implementation/agenda-decisions/2019/es-holdings-of-cryptocurrencies-june-2019.pdfSearch in Google Scholar

IASB. (2021). IASB proposes amendments setting out accounting for when no foreign exchange rate exists. https://www.ifrs.org/news-and-events/news/2021/04/iasbed-on-accounting-for-when-no-foreign-exchange-rate-exists/Search in Google Scholar

ICAC. (2023). https://www.icac.gob.es/contabilidad/normativas/internacionales#portadaSearch in Google Scholar

Jarno, K., & Kołodziejczyk, H. (2021). Does the design of stablecoins impact their volatility? Journal of Risk and Financial Management, 14(2), 42. https://doi.org/10.3390/jrfm14020042Search in Google Scholar

Kaczmarek, J., Alonso, S. L. N., Sokołowski, A., Fijorek, K., & Denkowska, S. (2021). Financial threat profiles of industrial enterprises in Poland. Oeconomia Copernicana, 12(2), 463–498. https://doi.org/10.24136/oc.2021.016Search in Google Scholar

Kampakis, S. (2022). Auditing tokenomics: A case study and lessons from auditing a stablecoin project. The Journal of the British Blockchain Association, 5(2), 1–7. https://doi.org/10.31585/jbba-5-2-(1)2022Search in Google Scholar

Klages-Mundt, A., Harz, D., Gudgeon, L., Liu, J. Y., & Minca, A. (2020, June 12). Stablecoins 2.0: Economic foundations and risk-based models. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3633542Search in Google Scholar

Kozhan, R., & Viswanath-Natraj, G. (2021, June 17). Decentralized stablecoins and collateral risk. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3866975Search in Google Scholar

Lessambo, F. I. (2018). Financial ratios analysis. In F. I. Lessambo, Financial statements (pp. 207–247). Springer. https://doi.org/10.1007/978-3-319-99984-5_17Search in Google Scholar

Lessambo, F. I. (2022). Financial ratios analysis. In F. I. Lessambo, Financial statements (pp. 229–275). Springer. https://doi.org/10.1007/978-3-031-15663-2_17Search in Google Scholar

Łęt, B., Sobański, K., Świder, W., & Włosik, K. (2023). What drives the popularity of stablecoins? Measuring the frequency dynamics of connectedness between volatile and stable cryptocurrencies. Technological Forecasting and Social Change, 189, 122318. https://doi.org/10.1016/j.techfore.2023.122318Search in Google Scholar

Li, C., & Shen, Y. (2021). The potential impacts and risks of global stablecoins. China Economic Journal, 14(1), 39–51. https://doi.org/10.1080/17538963.2021.1872167Search in Google Scholar

Liao, G. Y., & Caramichael, J. (2022). Stablecoins: Growth potential and impact on banking. International Finance Discussion Paper, (1334), 1–26. https://doi.org/10.17016/ifdp.2022.1334Search in Google Scholar

Lin, F., Liang, D., & Chen, E. (2011). Financial ratio selection for business crisis prediction. Expert Systems with Applications, 38(12), 15094–15102. https://doi.org/10.1016/j.eswa.2011.05.035Search in Google Scholar

Liu, Q., Yu, L., & Jia, C. (2020, September). MovER: Stabilize decentralized finance system with practical risk management. 2020 2nd Conference on Blockchain Research & Applications for Innovative Networks and Services (BRAINS). https://doi.org/10.1109/brains49436.2020.9223274Search in Google Scholar

Lyons, R., & Viswanath-Natraj, G. (2020). What keeps stablecoins stable? NBER Working Paper, 27136. https://doi.org/10.3386/w27136Search in Google Scholar

Melo, F., Sugimoto, N., Bains, P., & Ismail, A. (2022). Regulating the crypto ecosystem. FinTech Notes, (007). https://doi.org/10.5089/9798400221361.063Search in Google Scholar

Mikhaylov, A. (2023). Understanding the risks associated with wallets, depository services, trading, lending, and borrowing in the crypto space. Journal of Infrastructure, Policy and Development, 7(3).Search in Google Scholar

Moura de Carvalho, R., Coelho Inácio, H., & Figueiredo Marques, R. P. (2022). Ledger to ledger: Off- and on-chain auditing of stablecoin. The International Journal of Digital Accounting Research, 22, 129–161. https://doi.org/10.4192/1577-8517-v22_5Search in Google Scholar

Muhetaer, M. (2022, February 6). Time for a simple linear policy rule for stablecoin: Tether policy rule. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4028049Search in Google Scholar

Murialdo, M., & Belof, J. L. (2022). Can a stablecoin be collateralized by a fully decentralized, physical asset? Cryptoeconomic Systems, 2(1). https://doi.org/10.21428/58320208.adf5637aSearch in Google Scholar

Náñez Alonso, S. L. (2019). Activities and operations with cryptocurrencies and their taxation implications: The Spanish case. Laws, 8(3), 16. https://doi.org/10.3390/laws8030016Search in Google Scholar

Náñez Alonso, S. L., Jorge-Vázquez, J., Echarte Fernández, M. Á., & Reier Forradellas, R. F. (2021). Cryptocurrency mining from an economic and environmental perspective. Analysis of the most and least sustainable countries. Energies, 14(14), 4254. https://doi.org/10.3390/en14144254Search in Google Scholar

Procházka, D. (2018). Accounting for bitcoin and other cryptocurrencies under IFRS: A comparison and assessment of competing models. The International Journal of Digital Accounting Research, 18, 161–188. https://doi.org/10.4192/1577-8517-v18_7Search in Google Scholar

Ramos, C. F. (2021). Manual de auditoría de estados financieros en NIIF. Ediciones Universidad Alberto Hurtado. https://doi.org/10.2307/j.ctv21hrdwmSearch in Google Scholar

Sanz-Bas, D., del Rosal, C., Náñez Alonso, S. L., & Echarte Fernández, M. Á. (2021). Cryptocurrencies and fraudulent transactions: Risks, practices, and legislation for their prevention in Europe and Spain. Laws, 10(3), 57. https://doi.org/10.3390/laws10030057Search in Google Scholar

Schultz, J. J., Jr., Bierstaker, J. L., & O’Donnell, E. (2010). Integrating business risk into auditor judgment about the risk of material misstatement: The influence of a strategic-systems-audit approach. Accounting, Organizations and Society, 35(2), 238–251. https://doi.org/10.1016/j.aos.2009.07.006Search in Google Scholar

Sempere, C. P., Parra, A. M., Sánchez, M. J. B., & Cediel, A. (2021). Guía de criptoactivos MiCA. Aranzadi / Civitas.Search in Google Scholar

Sidorenko, E. L. (2019). Stablecoin as a new financial instrument. In S. I. Ashmarina, M. Vochozka & V. V. Mantulenko (Eds.), Lecture Notes in Networks and Systems (pp. 630–638). Springer International Publishing. https://doi.org/10.1007/978-3-030-27015-5_75Search in Google Scholar

Smith, S. S. (2023). The cryptoasset auditing and accounting landscape. In H. K. Baker, H. Benedetti, E. Nikbakht & S. S. Smith (Eds.), The emerald handbook on cryptoas-sets: Investment opportunities and challenges (pp. 13–24). Emerald Publishing Limited. https://doi.org/10.1108/978-1-80455-320-620221002Search in Google Scholar

Sobański, K., Świder, W., Włosik, K., & Łęt, B. (2023). Is the market success of dominant stablecoins justified by their collateral and concentration risks? In E. Demir, M. H. Bilgin, H. Danis & F. D’Ascenzo (Eds.), Eurasian business and economics perspectives (vol. 26, pp. 235–251). Springer. https://doi.org/10.1007/978-3-031-30061-5_15Search in Google Scholar

Sood, K., Singh, S., Behl, A., Sindhwani, R., Kaur, S., & Pereira, V. (2023). Identification and prioritization of the risks in the mass adoption of artificial intelligence-driven stablecoins: The quest for optimal resource utilization. Resources Policy, 81, 103235. https://doi.org/10.1016/j.resourpol.2022.103235Search in Google Scholar

Tache, M. (2020). The impact of IFRS adoption on audit fees and audit quality. Audit Financiar, 18(158), 352–360. http://revista.cafr.ro/ArticolEN?CodArticol=9638Search in Google Scholar

Tarasova, T., Usatenko, O., Makurin, A., Ivanenko, V., & Cherchata, A. (2020). Accounting and features of mathematical modeling of the system to forecast cryptocurrency exchange rate. Accounting, 6, 357–364. https://doi.org/10.5267/j.ac.2020.1.003Search in Google Scholar

Tether. (2023). Transparency. https://tether.to/es/transparency/#reportsSearch in Google Scholar

Torchelli, V., & Símaro, G. (2021). Criptomonedas, su tratamiento en las normas inter-nacionales de informacion financiera. Brazilian Journal of Business, 3(1), 886–903.Search in Google Scholar

Travkina, E. V., Fiapshev, A. B., & Belova, M. T. (2022). Stablecoin-based digital trading and investment platforms and their potential in overcoming sanctions restrictions. Economies, 10(10), 246. https://doi.org/10.3390/economies10100246Search in Google Scholar

Vučinić, M. (2020). FinTech and financial stability potential influence of FinTech on financial stability, risks and benefits. Journal of Central Banking Theory and Practice, 9(2), 43–66. https://doi.org/10.2478/jcbtp-2020-0013Search in Google Scholar

Vučinić, M., & Luburić, R. (2022). Fintech, risk-based thinking and cyber risk. Journal of Central Banking Theory and Practice, 11(2), 27–53. https://doi.org/10.2478/jcbtp-2022-0012Search in Google Scholar

Włosik, K., Łęt, B., Sobański, K., & Świder, W. (2022). Cross-sectional data on stable-coin characteristics. F1000Research, 11, 1188. https://doi.org/10.12688/f1000research.126298.1Search in Google Scholar

Xu, W., Xiao, Z., Dang, X., Yang, D., & Yang, X. (2014). Financial ratio selection for business failure prediction using soft set theory. Knowledge-Based Systems, 63, 59–67. https://doi.org/10.1016/j.knosys.2014.03.007Search in Google Scholar

Yi, S., Xu, Z., & Wang, G. J. (2018). Volatility connectedness in the cryptocurrency market: Is Bitcoin a dominant cryptocurrency? International Review of Financial Analysis, 60, 98–114. https://doi.org/10.1016/j.irfa.2018.08.012Search in Google Scholar

Zaiceanu, A. M., Hlaciuc, E., & Lucan, A. N. C. (2015). Methods for risk identification and assessment in financial auditing. Procedia Economics and Finance, 32, 595–602. https://doi.org/10.1016/s2212-5671(15)01437-9Search in Google Scholar