🚀 Nobel Laureate Warns of Insufficient Stablecoin Regulation
#stablecoins #regulation #jeantirole #nobellaureate #nobelprize #financialcrisis #bankrun #bailouts #reserveassets #treasurybonds #economicpolicy #risk #finance #cryptocurrency #stablecoinregulation
According to BlockBeats, Nobel Prize-winning economist Jean Tirole has expressed concerns over the current regulatory measures for stablecoins, warning that they are inadequate. In an interview, Tirole highlighted the potential risk of a financial crisis where these digital tokens could collapse, forcing governments to spend billions on bailouts. The 2014 Nobel laureate emphasized his significant worry about the regulation of stablecoins and the possibility of a bank run if doubts arise about the reserve assets backing these tokens.
Tirole pointed out that while stablecoins might appear to be 'absolutely safe deposits' to the average user, they could actually lead to financial losses and prompt calls for substantial government intervention. He also cautioned against the practice of using U.S. Treasury bonds as backing assets for stablecoins, noting that their relatively low yields might make them less attractive. This could potentially drive stablecoin issuers to seek investments in 'higher-yielding but riskier' assets.#stablecoins #regulation #jeantirole #nobellaureate #nobelprize #financialcrisis #bankrun #bailouts #reserveassets #treasurybonds #economicpolicy #risk #finance #cryptocurrency #stablecoinregulation
🚀 CZ Memoir Details FTX Collapse, $7B Binance Bank Run, and Exchange Signal Group Scrutiny
#FTX #Binance #CZMemoir #SamBankmanFried #Alameda #CarolineEllison #FTT #SignalGroup #DOJ #SEC #Crypto #BankRun #Reserves #TerraLUNA #CryptoExchange #BNB #LUNA
According to CoinDesk, Binance founder Changpeng Zhao (CZ) writes in his memoir Freedom of Money, released Tuesday, that he never seriously intended to acquire FTX during its November 2022 collapse, describing Sam Bankman-Fried's funding request as made "nonchalantly, as if he were asking for a bologna sandwich," and characterizing the non-binding letter of intent as a formality to assess user protection options. CZ identifies Alameda CEO Caroline Ellison's public offer to buy FTT at $22 as a "fatal mistake" that gave professional traders a floor price to short, sending the token from $22 to $5 and triggering $6 billion in outflows within 72 hours. He also discloses a Signal group called "Exchange Collaboration," set up by FTX's Zane Tackett during the Terra/LUNA collapse, including executives from Binance, Coinbase, Kraken and FTX, which later drew DOJ and SEC scrutiny; CZ denies any collusion. A subsequent bank run on Binance saw $7 billion withdrawn in a single day on Dec. 14, 2022, which CZ says was fully backed by reserves and reversed within a month.#FTX #Binance #CZMemoir #SamBankmanFried #Alameda #CarolineEllison #FTT #SignalGroup #DOJ #SEC #Crypto #BankRun #Reserves #TerraLUNA #CryptoExchange #BNB #LUNA