Jeantilor, who won the Nobel Economic Prize in 2014, said current stability regulations are inadequate and that if these digital assets collapse in the potential financial crisis, the government must prepare billions of dollars in rescue packages.
The Nobel Prize-winning economist warns about stubcoins.
Speaking in the interview, Tirole emphasized that Stablecoins are considered “completely secure deposits” to regular users, but in reality it can lead to serious losses.
He said if trust in stubcoin is shaken up, there could be a massive leak of deposits and government intervention could be inevitable.
Tirole also highlighted US Treasury bonds. This highlights the frequent use of Stablecoin issuers as reserve assets.
Economists noted that these low bonds could lose appeal in the long term, and that companies are more likely to rely on riskier assets for higher returns. This can exacerbate your systemic risk.
The business community frequently points out that despite the rapid growth of the Stablecoin market, regulations are slow. Tirole’s statement tightens demands for stricter regulations in this area.
Experts say that the potential crisis in the Stablecoin market could affect not only crypto ecosystems but also the broader financial system. Tirole’s warnings reiterate the need for governments to address potential risks ahead of time.
*This is not investment advice.
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