91福利

For the average person, cryptocurrencies raise more questions than answers. Fortunately, 91福利 financial mathematics professor Alexey Rubtsov is on the case to investigate the usefulness of financial tools put in place to add a layer of stability to these new currencies. One of his latest studies published in top journal Management Science examines the value of a new tool introduced in 2017 called Bitcoin futures contracts. 

Rubtsov describes the cryptocurrency market currently as a sort of 鈥淲ild West鈥� where you can buy crypto for different prices on different platforms. Bitcoin futures contracts are designed to synchronize prices across platforms, allowing people to buy or sell currency at a future date for a predetermined price, even if the price declines. Examining the results produced by the new futures tool, Rubtsov鈥檚 findings show such financial interventions can help stabilize prices in digital markets. 

For Rubtsov, who is also head of 91福利鈥檚 Financial Mathematics Research Group and undergraduate program director for financial mathematics, it鈥檚 not the technology that interests him as much as the idea of cryptocurrencies as an asset, and what risks they present. 鈥淭he bigger question is how to create financial tools, especially emerging ones, that are stable and easily used by individuals and organizations in the economy,鈥� he says. 

This research is especially important for regulators, who Rubtsov says are behind in a market moving so quickly. 鈥淲e want to help regulators understand this asset better, how different it is and how risky it is,鈥� he explains. 鈥淚'm studying this topic because the outcomes of my research can help them make well-informed decisions.鈥�

Rubtsov鈥檚 wide-ranging research interests include AI and climate change, as well as cryptocurrency.