Stablecoin collapse could impact U.S. bond market, economist warns

2023-1-15 22:30

Economist Eswar Prasad warned that a bank run on Stablecoins could fallout into the U.S. bond markets if issuers sell U.S. Treasurys to honor redemptions.

Prasad warned that if a bank run should occur while bond market sentiment remains “very fragile,” there could be a “multiplier effect” due to immense selling pressure on Treasurys.

“A large volume of redemptions even in a fairly liquid market can create turmoil in the underlying securities market. And given how important the Treasury securities market is to the broader financial system in the U.S. … I think regulators are rightly concerned.”

Stablecoins such as Tether (USDT) are backed by billions of dollars in reserves to accommodate mass-redemptions scenarios, according to USDT’s November 2022 report.

However, Prasad warned regulators that if many users try to redeem their Stablecoin for fiat, issuers such as USDT would have to sell off their assets in their reserve.

“If you have a large wave of redemptions that can really hurt liquidity in that market.”

The post Stablecoin collapse could impact U.S. bond market, economist warns appeared first on CryptoSlate.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

United Bitcoin (UBTC) на Currencies.ru

$ 0.9661 (-0.95%)
Объем 24H $0
Изменеия 24h: 2.25 %, 7d: -8.21 %
Cегодня L: $0.9661 - H: $0.9661
Капитализация $0 Rank 8588
Цена в час новости $ 0.3415 (182.9%)

could states economist stablecoin united collapse impact

could states → Результатов: 126


Research: Bitcoin remains under pressure ahead of CPI data; Michael Burry makes stagflation call

Analysts forecast a year-over-year increase of 6.5% in the United States Consumer Price Index (CPI) for December 2022 — with the Bureau of Labor Statistics’ official data releasing January 12 — but 2023 could bring some upside as investor Michael Burry expects CPI to move lower this year but warned that any subsequent pivot on interest […] The post Research: Bitcoin remains under pressure ahead of CPI data; Michael Burry makes stagflation call appeared first on CryptoSlate.

2023-1-12 23:35


JP Morgan Still Dabbling in Crypto, but Is the Bank Serious About Adoption?

JPMorgan recently released a report analyzing the cryptocurrency market in the United States, which could shed light on what is to come in the market in 2023. The bank, which is the largest in the US, has had a conflicting relationship with cryptocurrency, with CEO Jamie Dimon being vocal in his opposition to it, yet the bank has also provided banking services to Coinbase and Gemini.

2023-1-4 18:30


Фото:

VIDEO: Blockchain and elections | Jake Yocom-Piatt

Amid election week in the US, it felt topical to look at how technology could potentially impact the process going forward. Today, we vote with a pen and paper in most states. “Coming home to vote” is a well-repeated phrase in my home country of Ireland, where people need to travel back to their various […] The post VIDEO: Blockchain and elections | Jake Yocom-Piatt appeared first on Invezz.

2022-11-12 14:40


CryptoSlate Wrapped Daily: Ethereum could be considered a security post-Merge, Whitehouse releases crypto regulatory framework

The biggest news in the cryptoverse for Sept 16 includes the crypto community arguing that ETH could be considered a security post-merge, the Whitehouse releasing a framework for crypto regulation, United States banks pausing crypto lending plans amid challenging SEC guidelines, Celsius seeking approval to sell $23M worth of stablecoin assets.

2022-9-17 02:48


Фото:

US Second Largest Electricity Provider Indicates Interest In Bitcoin Mining

Duke Energy Corporation, American energy, and natural gas firm is aiming to broaden its scope by tapping into the Bitcoin mining industry, as revealed by insider reports. The company is the second-largest electric provider in the United States, and an interest in Bitcoin mining could spell new heights for the industry. Bitcoin Mining, to an […]

2022-7-11 19:50


NFTs Can be Used for Money Laundering, Says U.S. Treasury Department

A new report by the United States Department of the Treasury has revealed that the burgeoning non-fungible token space could be a conduit for money laundering. Sponsored Sponsored It says in the report that the increasing use of digital art as an investment or financial asset can allow bad players to launder money and finance […] The post NFTs Can be Used for Money Laundering, Says U.

2022-2-6 14:11


Фото:

Airbnb CEO Brian Chesky Reveals “Crypto Payments” Is a Top Request for Users

Airbnb, a prominent United States Marketplace for lodging, could soon accept payments in cryptocurrency. The announcement was first made as a hint by the company’s CEO, Brian Chesky. The Unfolding Developments Airbnb’s CEO Chesky said that the most requested feature by customers is to be able to pay for reservations in cryptocurrency. He responded to theRead More

2022-1-10 16:00