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 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.