{"id":32327,"date":"2025-06-17T18:16:38","date_gmt":"2025-06-17T18:16:38","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=32327"},"modified":"2025-06-17T18:16:38","modified_gmt":"2025-06-17T18:16:38","slug":"stablecoins-pose-systemic-risk-to-us-banks-and-dollar-former-boe-advisor-warns-theyre-very-bad-customers-for-the-banking-system","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=32327","title":{"rendered":"Stablecoins Pose &#8216;Systemic Risk&#8217; To US Banks And Dollar, Former BoE Advisor Warns: &#8216;They&#8217;re Very Bad Customers For The Banking System&#8217;"},"content":{"rendered":"<div>\n<p>A former Bank of England economist is raising red flags over the growing role of stablecoins in the U.S. financial system, with major implications for banks, as well as the U.S. Dollar.<\/p>\n<p><strong>What Happened: <\/strong>In a recent episode of <em>The Big View<\/em> by Reuters, <strong>Dan Davies<\/strong>, an ex-BoE regulatory economist and veteran bank analyst, compared stablecoin issuers like <strong>Circle Internet Group Inc.<\/strong> (NYSE:<a class=\"ticker\" href=\"https:\/\/www.benzinga.com\/stock\/CRCL#NYSE\">CRCL<\/a>) and <strong>Tether<\/strong> to banks that lack the oversight and safeguards of traditional institutions.<\/p>\n<p>\u201cThese things are basically intrinsically unstable financial structures,\u201d Davies said, noting that their promise of 1:1 redemption in U.S. dollars makes them particularly vulnerable to sudden runs, referring to bank runs, when a large number of individuals try to withdraw their funds from an institution at the same time.<\/p>\n<p>He says, \u201cIf you think there&#8217;s even a small chance that it [a stablecoin] might be worth 95 cents on the dollar, then you want to get out immediately.\u201d<\/p>\n<p><strong>See Also: <a href=\"https:\/\/www.benzinga.com\/news\/events\/25\/06\/45967070\/howard-lutnick-says-nearly-70000-register-for-5-million-trump-card-visa-as-us-eyes-1-trillion-windfall-from-premium-immigration-plan\">Howard Lutnick Says Nearly 70,000 Register For $5 Million \u2018Trump Card\u2019 Visa As US Eyes $1 Trillion Windfall From Premium &#8230;<\/a><\/strong><\/p>\n<p><a href=\"https:\/\/www.benzinga.com\/crypto\/cryptocurrency\/25\/06\/45981734\/stablecoins-pose-systemic-risk-to-us-banks-and-dollar-former-boe-advisor-warns-theyre-very-\" alt=\"Stablecoins\" pose risk to us banks and dollar former boe advisor warns: very bad customers for the banking system>Full story available on Benzinga.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A former Bank of England economist is raising red flags over the growing role of stablecoins in the U.S. financial system, with major implications for banks, as well as the U.S. Dollar. What Happened: In a recent episode of The Big View by Reuters, Dan Davies, an ex-BoE regulatory economist and veteran bank analyst, compared [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-32327","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/32327","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32327"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/32327\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}