Resilience of Stablecoin Reserve for Distributed Energy Trading

For payment settlement, a blockchain-based Peer-to-Peer (P2P) energy trading requires a stable medium of exchange with little price volatility. Stablecoins, the most suitable medium of exchange, gaining concentration even from central banks. A consortium of central banks recommends complying with ca...

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Bibliographic Details
Published in2022 IEEE PES 14th Asia-Pacific Power and Energy Engineering Conference (APPEEC) pp. 1 - 6
Main Authors Islam, Md. Ezazul, Chetty, Madhu, Lim, Suryani, Chadhar, Mehmood, Islam, Syed
Format Conference Proceeding
LanguageEnglish
Published IEEE 20.11.2022
Subjects
Basel Accord
Blockchain
Blockchains
Energy Trading
Fabrics
Liquids
Measurement
Memory
Peer-to-Peer (P2P)
Peer-to-peer computing
Smart contracts
Stablecoins
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Summary:For payment settlement, a blockchain-based Peer-to-Peer (P2P) energy trading requires a stable medium of exchange with little price volatility. Stablecoins, the most suitable medium of exchange, gaining concentration even from central banks. A consortium of central banks recommends complying with capital and liquidity standards for the high-quality liquid asset (HQLA) for the solvency of banks or financial institutions. Stablecoin as HQLA requires the adaption of such standards in P2P energy trading for reserve resilience. We propose a mechanism (NF90) that controls the inflow of stablecoins responding to Liquidity Coverage Ratio (LCR) for reserve resilience. Basel III accord recommends 100% of LCR. We measure the efficiency of NF90 concerning LCR as a metric. We simulate the proposed mechanism in Hyperledger Fabric as a permissioned blockchain platform for decentralisation, data storage, and smart contract. Experiments show that NF90 is the most efficient inflow control mechanism compared to other simulated mechanisms.
DOI:10.1109/APPEEC53445.2022.10072088