Summary
- Paul Krugman stated that stablecoins cannot be used for ordinary purchases and do not clearly provide any useful function.
- He pointed out that the anonymity of stablecoins could facilitate criminal activities and that their economic purpose is weak.
- The industry countered Krugman's opinion, saying that stablecoins are already being used by more than 100 million people.
Paul Krugman, who was awarded the Nobel Prize in Economic Sciences in 2008, expressed rather negative views on stablecoins (virtual assets pegged to the value of fiat currencies).
According to CryptoSlate, a media outlet specializing in digital assets (cryptocurrencies), on the 2nd (Korea time), Krugman pointed out in his blog, "Unlike debit cards or remittances, stablecoins cannot be used for ordinary purchases," and stated, "Stablecoins clearly do not provide any useful function."
Krugman emphasized that the only advantage stablecoins have over other payment methods is anonymity. He stated, "The anonymity related to stablecoin deposits is valuable to criminals seeking to commit crimes such as money laundering, extortion, or illegal drug purchases," and added, "The sole economic purpose of stablecoins is to facilitate criminal activity."
Meanwhile, Krugman also criticized the stablecoin bill being promoted in the US. He said, "The lawmakers supporting the US stablecoin bill known as the Genius Act are vested interests," and criticized, "Some are aware of the potential abuse of stablecoins but still agree to it, while others lack understanding, making it difficult to explain it to others."
The industry immediately responded. Nick Carter, co-founder of Coin Metrics, emphasized, "Krugman has extremely wrong information," adding, "Stablecoins are already being used by over 100 million people."
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
