Stablecoins as diversifiers, hedges and safe havens: A quantile coherency approach

Connectedness Between Gold-Backed Cryptocurrencies and the G7 Stock Market Indices During Global Crises: Evidence From the Quantile Vector Autoregression Approach

“…The study's total net directional connectedness framework showcases the resilience of gold-backed cryptocurrencies, particularly DGX, as safe havens within investment portfolios. Our findings contradict those of Jalan et al (2021), Widjaja et al (2023), and Kołodziejczyk (2023) who suggest that gold-backed crypto assets are not as reliable as real gold in fulfilling the role of a safe-haven asset, and that they may be vulnerable to volatility transmitted from gold markets. However, our results are in line with those of Ali et al (2022), Syuhada et al (2022), Trichilli and Boujelbéne (2023), Ali et al (2024), Maouchi et al (2024), andBelguith et al (2024) who support the safe haven ability of gold-backed cryptocurrencies.…”

“…Unexpected and rare events possess the capability not only to disrupt the stable growth of the global economy but also to pose a significant threat to participants in financial markets. Recently, there has been notable stress, volatility, considerable uncertainty, and financial contagion in global financial markets, attributed to the COVID-19 health crisis, the ongoing Russia-Ukraine conflict, and the Silicon Valley Bank crisis (Aharon et al, 2023;Akhtaruzzaman et al, 2021;Batten et al, 2023;Fakhfekh et al, 2023;Frikha et al, 2023;Ghorbel et al, 2022;Jana & Sahu, 2023a, 2023Khalfaoui et al, 2023;Pandey et al, 2023;. In comparison to previous economic and financial downturns, the challenges and risks associated with the recent health, geopolitical, and financial crises have prompted investors to seek uncorrelated assets as a means of safeguarding their stock market portfolios (Wang et al, 2022;Wen et al, 2022).…”

“…On the other hand, several studies disputed goldbacked cryptocurrencies' safe haven performance and stated that they are vulnerable to volatility originating from gold markets (Aloui et al, 2021;Díaz et al, 2022;Jalan et al, 2021;Kołodziejczyk, 2023;Nugroho, 2021;Widjaja et al, 2023). In this regard, Adzimatinur et al (2021) assess the risk and volatility inherent in goldbacked cryptocurrencies in comparison to conventional cryptocurrencies and financial assets.…”

The Dynamic Connectedness Between Environmental Attention and Green Cryptocurrency

“…Governments and businesses have endeavored to address this issue by implementing strategies to diminish carbon emissions and curb reliance on fossil fuels (Drei et al, 2019). Investing in green markets, such as green bonds, renewable energy, sustainable indices, and ESG indices, is considered a critical step (Karim et al, 2022;Khullar et al, 2020;Kołodziejczyk, 2023).…”

“…The scholarly debate surrounding cryptocurrencies has lasted a long time, owing to the awareness of their potential long-term benefits in fields of economics, the environment, and society (Li et al, 2022a;Vranken, 2017). Recent studies (Alshebami, 2021;Karim et al, 2022;Kołodziejczyk, 2023) indicate an increasing trend in the volatility transmission of cryptocurrency-based financial assets to green financial assets. Studies have shown a correlation between the Economic Policy Uncertainty index and the Volatility Index, which is an example of volatility spillover (Kamal & Hassan, 2022;.…”