Understanding Stablecoins

About this course

Stablecoins have emerged as the first "killer app" of the crypto space, with annual on-chain transaction volume now exceeding $30 trillion — surpassing Visa and Mastercard combined. Yet most people, including many finance professionals, do not understand how they work, what distinguishes one type from another, or what risks they carry. This course, taught by Duke University Professor Campbell R. Harvey, provides a rigorous yet accessible foundation in stablecoin design, mechanics, and risk. You will learn how fiat-backed stablecoins like USDT and USDC maintain their peg, why tokenized gold could revive a voluntary gold standard, how crypto-collateralized systems like MakerDAO mirror central bank operations, and what caused the $40 billion Terra/Luna collapse. The course details a comprehensive risk taxonomy and an overview of emerging regulatory frameworks, including the GENIUS Act. It concludes that stablecoins will be the currency of the new world of AI-enabled agent-to-agent commerce. Whether you are a finance professional, policymaker, developer, or informed investor, this course equips you to evaluate stablecoins critically - understanding not just the opportunity, but the risks that come with a technology reshaping global payments.