Nobel Economist Warns: Stablecoins Could Spark Costly Bailouts

Nobel Prize-winning economist Jean Tirole raised red flags over stablecoins, saying he is “very, very worried” about how the assets are supervised. In an interview with the Financial Times, the Toulouse School of Economics professor warned that shaken confidence in reserves could spark mass redemptions, forcing governments into expensive bailouts. Stablecoin Can Result in “Runs” and Banking Crisis Tirole, who won the Nobel Prize in Economics in 2014, warned that the prevalent optimistic scenarios of stablecoin’s growth amplify systemic risks. He said, “Retail investors often view stablecoins as a perfectly safe deposit source: https://beincrypto.com/nobel-laureate-tirole-stablecoin-bailout-warning/