Nobel Economist Sounds Alarm on Stablecoin Risks

Speaking in a recent interview, the 2014 Nobel Prize winner in economics said that many users treat stablecoins as risk-free deposits, yet their backing is far from guaranteed.

A sudden loss of trust, he warned, could trigger large-scale withdrawals and ultimately require state intervention to prevent broader financial instability.

Tirole pointed to the heavy reliance of issuers on U.S. Treasuries to back their tokens.

While considered safe, these low-yielding assets may become less attractive over time, pushing companies toward riskier investments that could magnify systemic vulnerabilities.

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His remarks come as policymakers face mounting pressure to tighten rules around stablecoins, which have become a cornerstone of digital asset trading and payments.

Economists caution that unchecked growth in the sector could have spillover effects beyond crypto, potentially destabilizing traditional markets.

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