Stablecoins’ systemic risks must be monitored, says Kashkari
Providers incentivised to invest in risky assets as they search for yield, Minneapolis Fed chief says
Stablecoin issuers are incentivised to invest in risky assets to generate yield, and central banks should closely watch the systemic risks this might bring, the president of the Federal Reserve Bank of Minneapolis has said.
In a panel hosted today (June 2) during the Bank of Korea International Conference, Neel Kashkari said stablecoins in their current state did not raise any significant concerns, as they had mostly been used for facilitating crypto trading. He likened them to casino chips
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