Nobel Prize in Economic Sciences laureate "Stablecoins could collapse during a financial crisis due to lack of regulation"

Recently, the adoption of stablecoins (virtual assets whose value is linked to fiat currencies) has been increasing worldwide. However, there are concerns that insufficient regulation could create greater risks if a financial crisis occurs.

On the 1st (Korean time), according to Zhitong Finance, Jean Tirole, Nobel Prize in Economic Sciences laureate, warned, "The current regulation of stablecoins is insufficient," and "If this situation continues, stablecoins could collapse in a future financial crisis."

He added, "Stablecoins may be regarded by ordinary users as perfectly safe deposits," but pointed out that "if the collapse mentioned earlier occurs in a financial crisis, the state may have to step in and inject tens of billions of dollars in bailout financing."

Furthermore, he said, "Currently stablecoins use U.S. Treasuries as collateral assets, but in the future they could set collateral assets to products with higher yields," and diagnosed, "In that case, there would also be problems with safety."