Home Fear & Greed Pools Wallets Dictionary Advertise Facebook Twitter Telegram Reddit Youtube
Market Cap:
24h Vol:
Cryptocurrencies: 17511
Markets: 63300
CLC Cryptolist Club logo CLC Cryptolist Club logo
ENG
EST
RUS
TUR
DEU
CHI
KOR
ITA
USD
USD
EUR
AED
AFN
ALL
AMD
ANG
AOA
ARS
AUD
AWG
AZN
BAM
BBD
BDT
BGN
BHD
BIF
BMD
BND
BOB
BRL
BTN
BWP
BYN
BZD
CAD
CDF
CHF
CLF
CLP
CNH
CNY
COP
CRC
CUC
CUP
CVE
CZK
DJF
DKK
DOP
DZD
EGP
ERN
ETB
FJD
FKP
GBP
GEL
GHS
GIP
GMD
GNF
GTQ
GYD
HKD
HNL
HRK
HTG
HUF
IDR
ILS
IMP
INR
ISK
JMD
JOD
JPY
KES
KGS
KHR
KMF
KPW
KRW
KWD
KYD
KZT
LAK
LBP
LKR
LRD
LSL
LYD
MAD
MDL
MGA
MKD
MMK
MNT
MOP
MRO
MRU
MUR
MVR
MWK
MXN
MYR
MZN
NAD
NGN
NIO
NOK
NPR
NZD
OMR
PAB
PEN
PGK
PHP
PKR
PLN
PYG
QAR
RON
RSD
RUB
RWF
SAR
SBD
SCR
SDG
SEK
SGD
SHP
SLL
SRD
SSP
STD
STN
SVC
SYP
SZL
THB
TJS
TMT
TND
TOP
TRY
TTD
TWD
TZS
UAH
UGX
UYU
UZS
VES
VND
VUV
WST
ZAR
ZMW
ZWL
Market Cap
24h Vol
17511
Cryptocurrencies
48.62%
Bitcoin Share
Seeking Alpha 2022-06-29 20:17:48

Steve Hanke says stablecoins face cross-currency settlement risk - Yahoo Finance

Steve Hanke says stablecoins face cross-currency settlement risk - Yahoo Finance

Steve Hanke, a respected economist at John Hopkins, says one of the many inherent flaws of stablecoins is the risk of settling off-chain transactions with them given a time lag, he told yahoo Finance U.K. in an interview Wednesday. The economist warned about stablecoins' cross-currency settlement risk, as they flow within minutes among buyers and sellers, but the assets that back those "stable" coins take at least one day to settle. Hanke looked back to 1974 when the Herstatt Bank in Germany went bankrupt "in between the time they received the Deutsche marks and the payment that was to be made in U.S. dollars," he said, as quoted by Yahoo Finance UK. In turn, the bank's counterparties never received those dollars due to time lags. In the digital asset ecosystem, algorithmic stablecoin TerraUST (UST-USD), which links with Luna (LUNA-USD) to keep its peg with the U.S. dollar, had de-pegged from the greenback and became nearly worthless after tens of billions of dollars got wiped out. That put the rest of the crypto market on edge and increased regulatory scrutiny on the industry. Tether (USDT-USD), the largest stablecoin by market cap, briefly lost its peg to the U.S. dollar in May, but has since remained at $1. In mid-February, reasury Undersecretary for Domestic Finance Nellie Liang said stablecoins aren't so stable. 

Most Read News

Market Cap
24h Vol
48.62%
Bitcoin Share
0
Today News
Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.