Security Perceptions of Users in Stablecoins: Advantages and Risks within the Cryptocurrency Ecosystem

  • Maggie Yongqi Guan
  • , Yaman Yu
  • , Tanusree Sharma
  • , Molly Zhuangtong Huang
  • , Kaihua Qin
  • , Yang Wang
  • , Kanye Ye Wang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Stablecoins, a type of cryptocurrency pegged to another asset to maintain a stable price, have become an important part of the cryptocurrency ecosystem. Prior studies have primarily focused on examining the security of stablecoins from technical and theoretical perspectives, with limited investigation into users' risk perceptions and security behaviors in stablecoin practices. To address this research gap, we conducted a mixed-method study that included constructing a stablecoin interaction framework based on the literature, which informed the design of our interview protocol, semi-structured interviews (n=21), and Reddit data analysis (9,326 posts). We found that participants see stable value and regulatory compliance as key security advantages of stablecoins over other cryptocurrencies. However, participants also raised concerns about centralization risks in fiat-backed stablecoins, perceived challenges in crypto-backed stablecoins due to limited reliance on fully automated execution, and confusion regarding the complex mechanisms of algorithmic stablecoins. We proposed improving user education and optimizing mechanisms to address these concerns and promote the safer use of stablecoins.

Original languageEnglish (US)
Title of host publicationProceedings - 46th IEEE Symposium on Security and Privacy, SP 2025
EditorsMarina Blanton, William Enck, Cristina Nita-Rotaru
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages2753-2771
Number of pages19
ISBN (Electronic)9798331522360
DOIs
StatePublished - 2025
Event46th IEEE Symposium on Security and Privacy, SP 2025 - San Francisco, United States
Duration: May 12 2025May 15 2025

Publication series

NameProceedings - IEEE Symposium on Security and Privacy
ISSN (Print)1081-6011

Conference

Conference46th IEEE Symposium on Security and Privacy, SP 2025
Country/TerritoryUnited States
CitySan Francisco
Period5/12/255/15/25

Keywords

  • blockchain
  • cryptocurrency
  • security
  • stablecoin

ASJC Scopus subject areas

  • Safety, Risk, Reliability and Quality
  • Software
  • Computer Networks and Communications

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