Joining the FinextraTV studio, Andros Gregoriou, Head of Research and Professor of Finance, Liverpool Business School, Liverpool John Moores University, helped to demystify the rise of stablecoins and provides the key foundational elements that all should know. Gregoriou began by breaking down the four forms of stablecoins: 1. Dollar pegged, 2. Commodity pegged, 3. Digital Asset pegged and 4. Non-collateralised. These four forms, he says, are critical to understand as not all stablecoins are equal or risk-free, as is sometimes assumed. Other crucial elements to understand, Gregoriou asserts, are carefully implemented regulation, like a principle-based approach, the importance of the one-to-one relationship, and of the need for stablecoins to be fully backed. Further to this, he gives his opinion on what the future may look like when other countries continue to release their own versions, not pegged to the dollar.