Stablecoins Backed by “Risky Assets,” IMF Exec Warns

Key Takeaways

  • Tobias Adrian, a director at the International Money Fund, has warned that certain fiat-backed stablecoins could fail.
  • He pointed out that some fiat-backed stablecoins, such as Tether, are not fully backed or are backed by risky assets.
  • However, he also noted that stablecoins that are fully backed by cash are less vulnerable to this problem.

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