Digital Currency Initiative

📷 Watch here: bloomberg.com/news/videos/20… At DCI, our research focuses on rigorous evaluation of digital currency infrastructure to inform sound policy and resilient systems — this conversation is part of that ongoing mission.

Our Director @neha joined Bloomberg @crypto to discuss stablecoins and the risks they may face under stress from financial, technological, and regulatory angles. She highlights why not all blockchains are created equal and why stability at scale matters as stablecoins grow in use

10/ Full paper from the MIT DCI below: looking forward to hearing feedback and thoughts from regulators, builders, and market practitioners dci.mit.edu/projects/hidde…

9/ Stablecoins are dynamic systems that span markets, intermediaries and software And as stablecoins scale across our financial system, these risks stop being nominal. The entirety of the stablecoin stack will need to be safeguarded

🧵1/ Even if stablecoins have 1:1 backing with high-quality, liquid assets, that doesn’t mean they are completely insulated from risk. The latest paper from the MIT DCI shows other risks stablecoins may be exposed to

Coming up at the DC Privacy Summit on 10/16, we're thrilled to be hearing from @mitDCI's @neha. More information on the agenda and tickets here: dcprivacysummit.org

This post is part of our series celebrating 10 years of the DCI. Stay tuned for more highlights from our most impactful projects.

5/ Learn about Cryptanalysis of Curl-P here: dci.mit.edu/projects/crypt…

🧵1/ In 2017, a team at DCI, led by Ethan Heilman, discovered a bug in IOTA’s custom ternary hash function, Curl-P, that could have allowed attackers to steal users’ funds under specific circumstances.

Now comes the hard part: turning law into policy. The gaps could define the future of stablecoins and the dollar. Check out our deep dive here 👉dci.mit.edu/posts/stableco…

Some big risks that we call out: - No clear redemption rules under stress - No interoperability standards - Yield ban politics - Including permitted stablecoin issuers under the Bank Secrecy Act 2/

🚨The GENIUS Act is now law and it’s the most comprehensive stablecoin regulation to-date As policymakers now work to build frameworks around the law, they must answer critical questions 1/