While Stablecoin’s momentum continued to increase worldwide, the 2014 Nobel Prize -winning economist Jean Tiron has recently warned the risks of a potential financial crisis due to “insufficient control” in the industry.
The economist warns about billions of dollars of crisis
On Monday, Jean Thyrole shared his concerns about insufficient stablecoin supervision in the midst of the last acceleration in the sector, and confirmed that he was “very, very worried” about lack of insufficient control and potential hidden risks it may require.
One report Financial Times (FT) and the Toulouse School of Economics, professor of the Retail traders, which are considered to be “perfect case deposit ,, warned governments for“ multibillion dollar rescue transactions ”if they are resolved in a future financial crisis.
In addition, he warned that supporting US government bonds may become popular due to relatively low returns of basic assets, and pointed out the previous cases where the return of the Treasury debt was negative for several years and that the payments were even lower after inflation.
In particular, digital assets fixed to the US Dollar must be supported by one -to -one or treasury invoices after the entry into force of guidance and national innovation for the US Stablecoins law in July.
As reported by Bitcoinist, US Treasury Secretary Scott Bessent claims that the crypto industry is “betting ı as the key buyer of US treasures in the coming years. According to a previous FT report, Bessent Wall Street pointed out that Washington expects the industry to be “an important source of demand for US government bonds, as Washington is trying to increase the demand for the increase of government debt.
Treasury secretary, for information, such as Circle and Tether in contact with leading stablecoin exporters and the Treasury department pointed out the plans to increase the sale of short -term invoices for the next neighborhoods. However, the financial services company UBS Global Chief Economist Paul Donovan does not believe that the sector will increase the demand for US government bonds.
Donovan adds that “Stablecoins is about redistributing the money supply ,, and that someone who sells treasury bills to buy Stablecoins depositing on money bills does not change the demand for US debt vehicles”.
Better stablecoin supervision
Following the global printing for the sector, the stablecoin market increased over 280 billion dollars. Last month, Goldman Sachs confirmed that the industry was ında at the beginning of a stablecoin golden hurry that could bring the global market to trillions of dollars ”.
Thyrole thinks that stablecoin exporters can “be attracted to attraction için to invest in other assets with higher return and more risky”. A higher risk will increase the likelihood of a potential crisis and trigger a run in the coin.
“If it is kept by retail or corporate deposit holders who think that it is an excellent case deposit, the government will be under too much pressure to save deposit holders, so that they do not lose their money,” he added that only a few uninsured deposits have been damaged in the last decade.
The economist announced that potential risks can be managed if global supervisors have sufficient resources and encouraged to move carefully. However, he warned that this was a “great if” by referring to the personal and political interests of the members. [US] management.”
However, the US Treasury Secretary thinks that the latest regulatory progress is sufficient to ensure the growth of the sector. “The Genius law provides the regulatory clarity that must turn into a rapidly growing market, a multitrillion -dollar industry,” BESSENT said in July. He said.
Bitcoin (BTC) trades at $110,939 in the one-week chart. Source: BTCUSDT on TradingView
Specific picture from UNPASH.com, graphics from tradingView.com
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