The Fed saw stablecoins as a threat to financial stability

stablecoins

Stablecoins can bring instability to the financial system as a whole. This is stated in the study Federal Reserve Bank Boston and New York.

Experts compared USDT and USDC with money market funds and found similarities in the behavior of holders of “stable coins” and mutual funds in conditions bank runas well as a number of other vulnerabilities.

“Our results show that stibcloins are also susceptible to specific stresses. If “stable coins” will become more interconnected with key financial markets […]they will turn into a potential source of turbulence for the system as a whole,” – the document says.

The researchers also suggested that stablecoins have a threshold of $0.99. Leaving below this level can provoke a surge in applications for withdrawal of funds to fiat and bank run, which creates a risk for the remaining holders.

Let us recall that Bernstein analysts predicted an increase in the capitalization of the “stable coin” segment to $2.8 trillion over the next five years.

https://forklog.com/news/v-kaiko-ukazali-na-problemy-usdt-s-privyazkoj

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