Stablecoins more vulnerable to runs, say Fed researchers
Authors point out similarities with MMFs and warn about financial instability risks
A growing stablecoin market “potentially [poses] stability risks to the larger financial system” say researchers with the Federal Reserve Banks of Boston and New York. They argue stablecoins could suffer runs similar to money market funds (MMFs).
The working paper is written by Kenechukwu Anadu, Pablo Azar, Marco Cipriani, Thomas Eisenbach, Catherine Huang, Mattia Landoni, Gabriele La Spada, Marco Macchiavelli, Antoine Malfroy-Camine and Christina Wang.
They say both stablecoins and MMFs
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