Stablecoins are in the limelight, but this Yale Economist remains skeptical about their stability
Stablecoins are taking the center stage in crypto-related discussion especially as adoption increases meteorically. Sean Stein, a professor, and entrepreneur recently noted in a Forbes article, that “more (allegedly) mundane versions of cryptocurrency – stablecoins – look increasingly like the method by which crypto will achieve mainstream adoption and utilization.” But this viewpoint has done little to sway critics. As it turns out, not everyone isnt a fan of stablecoins. Economist says Stablecoins like Tether are sketchy Gary Gorton, an economist at the Yale School of Management has long been in the business of dissecting the defects in the financial ecosystem, with a particular interest in the factors that played a role in the financial crisis that took place between 2008 and 2009. Stablecoins happen to fall into the list of questionable assets that Gorton has been poking at for a long time. As Bloomberg reports, Gorton doesn‘t believe in the Blockchain’s ability to assure that stablecoins have any reliable pillars backing them. Stablecoins are usually paired to fiat, exchange-traded commodities, or other cryptocurrencies. They are designed with the aim of bringing market volatility to the barest minimum but Gorton questions their stability. He refers to the part of Tethers website homepage that adds