Stablecoins: Global Financial System's New Concern

New concerns arise about stablecoins stability, potentially triggering a massive sell-off of US Treasury bonds. Central bank officials warn of a scenario more impactful than the 2008 financial crisis. The Dutch National Bank Governor expresses worries about a sudden rush of redemptions forcing the sale of underlying assets, often US Treasury bonds. The stablecoin market is exploding, with Tether and Circle controlling eighty percent of the market, increasing the risk of mass redemptions. However, US Federal Reserve Governor Stephen Miran sees stablecoins as an innovation, less likely to cause a widespread panic due to lack of yield and federal deposit insurance. Other financial institutions warn of potential disruptions in the worlds most important government bond market.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.