Stablecoins are not ‘crypto safe haven’ – ECB paper
Shocks in crypto markets significantly reduce stablecoin market capitalisation, researchers find
Despite their promised convertibility to real-world currencies, stablecoins do not act as “safe havens” against crypto or other financial shocks, a working paper from the European Central Bank (ECB) has argued.
The paper, published on October 7, notes that stablecoins’ balance sheets resemble those of money market funds (MMFs), with short-term liquid assets such as US Treasuries, high-quality commercial paper and bank deposits.
The authors – Iñaki Aldasoro, Giulio Cornelli, Massimo Ferrari Minesso
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