Jean Tirole, who won the Nobel Prize in Economics in 2014, said that current regulations for stablecoins are inadequate and that governments may have to prepare billions of dollars in rescue packages if these digital assets collapse during a possible financial crisis.
Nobel Prize-Winning Economist Warns About Stablecoins: “Inadequate Regulation Could Lead to Government Bailouts”
Speaking in an interview, Tirole emphasized that stablecoins are seen as “completely safe deposits” for ordinary users, but in reality, they can lead to serious losses.
According to him, if trust in stablecoins is shaken, there could be a mass outflow of deposits, making government intervention inevitable.
Tirole also highlighted US Treasury bonds, which stablecoin issuers frequently use as reserve assets.
The economist noted that these low-yielding bonds could lose their appeal in the long run, and that companies may be more likely to turn to riskier assets in search of higher returns. This could exacerbate systemic risks.
Economic circles frequently point out that despite the stablecoin market’s rapid growth, regulation is slow. Tirole’s statements have reinforced calls for stricter regulations in this area.
According to experts, a potential crisis in the stablecoin market could impact not only the crypto ecosystem but also the broader financial system. Tirole’s warning reiterates the need for governments to address potential risks in advance.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/nobel-prize-winning-economist-warns-about-stablecoins-a-collapse-could-happen-in-a-possible-financial-crisis-details-here/
