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The Fed cites worries about stablecoin in its latest Financial Stability Report -Breaking

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In its Financial Stability Report, the Fed mentions concerns about stablecoin.

Monday’s semi-annual Financial Stability Report was released by the United States Federal Reserve Board. The report points to the volatility on commodities markets brought on by the Russian invasion of Ukraine, the spread of the omicron variant of COVID-19 and “higher and more persistent than expected” inflation as sources of instability.

Some types of money market funds and stablecoins were also available. SingledThe report noted that stablecoins are prone to running. Stablecoins, according to the Fed have an overall value of $180 Billion, with (80%) representing (USDT), (USDCBinance USD (BUSD), These assets are secured by assets that can lose value during stress or become illiquid, which could lead to redemption risks. The central bank also stated that a lack transparency may exacerbate those risks.