{"id":45025,"date":"2021-06-26T18:11:55","date_gmt":"2021-06-26T15:11:55","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=45025"},"modified":"2025-08-31T19:42:57","modified_gmt":"2025-08-31T16:42:57","slug":"the-fed-calls-the-tether-stablecoin-a-challenge-to-financial-stability","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/the-fed-calls-the-tether-stablecoin-a-challenge-to-financial-stability\/","title":{"rendered":"The Fed calls the Tether stablecoin a ‘challenge’ to financial stability"},"content":{"rendered":"

The Tether (USDT) stablecoin threatens the stability of the financial system, according to Eric Rosengren, president of the Federal Reserve Bank of Boston. In one slide of his presentation, he called the token \u201ca new destroyer\u201d of the short-term lending market.<\/p>\n

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Data: Boston Fed.<\/figcaption><\/figure>\n

On the day of the presentation, June 25, Rosengren expanded on his position in an interview Yahoo Finance<\/a>.<\/p>\n

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\u201cIf you look at their [stablecoins’] portfolios, they look like the portfolios of the primary money-market fund, but perhaps riskier,\u201d said the president of the Boston Fed.<\/p>\n<\/blockquote>\n

He added that Tether holds a wide array of assets, the spreads of which widened enough during the coronavirus pandemic.<\/p>\n

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\u201cWe should think more broadly about what could disrupt the market for short-term lending. Of course, stablecoins are one element,\u201d said Rosengren.<\/p>\n<\/blockquote>\n

He also expressed concerns about the lack of regulation in the stablecoins market, which, he said, \u201cis becoming an increasingly important sector of the economy\u201d.<\/p>\n

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\u201cWe should take seriously what happens when people rush to exit these instruments,\u201d added Rosengren.<\/p>\n<\/blockquote>\n

As of writing, Tether’s market capitalization stands at $63 billion, according to CoinGecko<\/a>.<\/p>\n

At the end of May, the aggregate capitalization of stablecoins surpassed $100 billion<\/a>.<\/p>\n

20210625-charts<\/a> by ForkLog<\/a> on Scribd<\/p>\n