The economist warns that Stablecoins may ignite the financial crisis star-news.press/wp

As Stablecoin’s momentum continues to rise all over the world, the 2014 Nobel Prize -winning economist Jean Terrol recently warned of the risks of the possible financial crisis due to “insufficient supervision” in the sector.

The economist warns of billions of dollars in the crisis

On Monday, Jean -Terrol participated in his fears about the insufficient STADLECOIN supervision among the last momentum in this sector, stressing that he is “very concerned” about the lack of adequate supervision and the potential hidden risks that it could require.

in interview With Financial Times (FT), a professor at Toulouse College of Economics has warned of the possibility of forcing governments to “billions of dollars in rescue operations” if the digital assets, which are considered “completely safe deposit” by retailers, are disintegrated in a future financial crisis.

He also warned that Stablecoins support with US government bonds could become unpopular due to the low returns of basic assets, indicating previous cases when the cabinet debt returns were negative for several years, and the payments after inflation were less.

It is worth noting that the digital assets linked to the US dollar are required to be supported on one basis to one by US dollars or treasury bills after the age of guidance and establishing the national innovation of the United States Law (Genius) in July.

As Bitcoinist said, US Treasury Secretary Scott Payet “is betting on the encryption industry to become a major buyer of the United States Treasury in the coming years. According to a previous FT report, BESENT referred to Wall Street that it is expected that “industry” is an important source of demand for US government bonds “as Washington seeks to enhance the demand to increase the debts of the new US government.

According to what was reported, the Treasury Secretary contacted the main stablecoin exporters, such as Circle and Tether, to obtain information, indicating the alleged treasury Ministry’s plans to increase sales of short -term bills for the next quarter. However, the chief global economists of the UBS Financial Services Company, Paul Donovan, does not believe that the sector will enhance the demand for US government bonds.

“Stablecoins revolves around the redistribution of cash,” adding that “a person selling treasury bills to buy Stablecoins, which invests money in treasury bills, does not change the demand for American debt tools.”

Best STABLECOIN

After the global payment of the sector, the Stablecoin market rose to more than 280 billion dollars. Last month, Goldman Sachs confirmed that the industry “at the beginning of gold rush”, which can reach the global market to trillion dollars.

Tirole considers that Stablecoin exporters can “seduce seduction” to invest in other assets that “carry higher and dangerous returns.” High risks will increase the chance of a possible crisis, which leads to the operation of symbols.

“If it was kept by the depositors of the retail or the institutions who believed that it was a completely safe deposit, the government will be under great pressure to save the depositors so that they do not lose their money,” adding that a few unbelievable depositors from traditional banks have faced losses over the past decades.

The economist explained that potential risks can be managed if global supervisors have sufficient resources and are motivated to act carefully. However, he warned that this was “big if”, referring to the personal and political interests of the members of “some of the main members of the (United States) administration.”

However, the US Treasury Secretary considers that recent organizational developments are sufficient to advance the sector’s growth. “The genius law provides rapidly growing the organizational clarity that it needs to grow to become billions of dollars,” Pesin said in July.

Bitcoin (BTC) trades at $110,939 in the one-week chart. Source: BTCUSDT on TradingView

Distinctive photo of Unsplash.com, Chart from Tradingview.com

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