Nobel laureate Paul Krugman criticizes stablecoins, stating that they could trigger a financial crisis

ChainCatcher news, according to cryptoslate, 2008 Nobel Prize winner in Economics Paul Krugman stated in a blog post that "stablecoins have no obvious useful function" and believes their only economic rationale is "to facilitate criminal activities," such as money laundering and extortion. He compared stablecoin issuers to 19th-century "pre-war banks," describing them as a new type of "shadow banking" that could evade regulation and pose risks similar to the 2008 financial crisis.

Coin Metrics co-founder Nic Carter responded on social media, stating that Krugman's view on stablecoins is "extremely wrong," and pointed out that over 100 million stablecoin users worldwide prove their practical use. Bitwise Asset Management President Paul Fusaro also supported Carter's viewpoint.