A recent study by the European Central Bank (ECB) has found that stablecoins, such as Tether (USDT) and Circle (USDC), are susceptible to shocks caused by changes in US monetary policy. While stablecoins have been seen as a refuge from market shocks, the study suggests that they are more affected by contractionary monetary policy changes than by shocks in the crypto market. On the other hand, money market funds (MMFs) benefit from these changes, experiencing significant inflows. The study questions the role of stablecoins as a safe-haven asset and criticizes their claims of being uncorrelated to traditional financial markets.



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