Fed paper models how rising gas fees can trigger stablecoin redemptions despite regulated reserves.
CryptoSlate posted about a Federal Reserve paper on stablecoin risks under the GENIUS Act. The post states that a fully backed stablecoin can still face a run because the law regulates reserves but not the blockchain. Fed economists modeled scenarios where rising gas fees make small payments uneconomic and prompt abrupt exits when network effects are weak. The linked article describes how blockchain congestion can trigger redemptions or chain migration even with safe reserves.
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Fed paper models how rising gas fees can trigger stablecoin redemptions despite regulated reserves.
CryptoSlate posted about a Federal Reserve paper on stablecoin risks under the GENIUS Act. The post states that a fully backed stablecoin can still face a run because the law regulates reserves but not the blockchain. Fed economists modeled scenarios where rising gas fees make small payments uneconomic and prompt abrupt exits when network effects are weak. The linked article describes how blockchain congestion can trigger redemptions or chain migration even with safe reserves.
CryptoSlate@CryptoSlateA fully backed stablecoin can still face a run. Fed economists modeled how rising gas fees can make small payments uneconomic and trigger abrupt exits when network effects are weak. GENIUS regulates reserves, not the blockchain carrying the dollars.
CryptoSlate@CryptoSlateA fully backed stablecoin can still face a run. Fed economists modeled how rising gas fees can make small payments uneconomic and trigger abrupt exits when network effects are weak. GENIUS regulates reserves, not the blockchain carrying the dollars.
