Why Stablecoins Could Trigger a “Bank Run” Akin to 2008 Financial Crisis

Stablecoin market capitalization has increased by 90% since late 2023, exceeding $230 billion. These digital tokens maintain a steady value by being backed by reserves. While their increasing use in international transactions strengthens the US dollar’s position as the dominant global currency, critics warn that stablecoins could also introduce systemic risks reminiscent of past financial crises. Stablecoins and the Risk of a New Financial Crisis During market turmoil, stablecoin holders may rush to redeem their tokens for cash, forcing issuers to sell rapidly off their reserve assets source: https://beincrypto.com/stablecoins-bank-run-financial-crises/