The total market value of stablecoins is 280 billion dollars, dominated by the American tokens USDT and USDC.
Stablecoins are mainly used on cryptocurrency exchanges, where they allow easy entry and exit of a trade without conversion.
Approximately 80 percent of all transactions on centralized cryptocurrency exchanges involve stablecoins, while other use cases, such as cross-border payments, are still marginal.
If people lose confidence in the stablecoin, it can cause a massive withdrawal of money and a drop in the value of the token, with consequent secondary effects on the securities markets and short-term United States government bonds.
The spread of stablecoins can also lead to an outflow of deposits from banks, as users could transfer funds to this token, which would give banks a more unstable source of funding, reports B92.
In the European Union, however, interest payments on stablecoins are prohibited, which limits this risk.
The main risk in the Eurozone comes from regulatory differences between jurisdictions, which allow the difference in rules or prices between different countries in and outside the European Union to be exploited to make a profit.
The aforementioned risks in the Eurozone are currently limited, but the growth in the use of stablecoins requires careful supervision by the regulator, it is noted on the ECB’s website.
(Vijesti.ba)
