Stablecoins may introduce instability into the financial system as a whole. This is stated in research FRB Boston and New York.
Experts compared USDT and USDC with money-market funds and found similarities in the behavior of stablecoin holders and fund shares under a bank run scenario, as well as a number of other vulnerabilities.
“Our results show that stablecoins are also subject to specific stresses. If “stablecoins” become more interconnected with key financial markets […], they will become a potential source of turbulence for the system as a whole,” — the paper states.
Researchers also suggested that stablecoins have a floor at $0.99. A drop below this threshold could trigger a surge in fiat withdrawals and a bank run, creating a risk for remaining holders.
Analysts at Bernstein previously forecast the growth in capitalization of the stablecoins segment to $2.8 trillion over the next five years.