Odaily Planet Daily recently reported that the Federal Reserve Banks of Boston and New York released a staff report comparing stablecoins such as USDT and USDC to money market funds. The report notes that stablecoins and money market funds follow similar patterns during their operation, and that stablecoins may inject instability into the broader financial system. 📉

The report states: “Stablecoins are vulnerable to runs during widespread crypto market disruptions and extraordinary stress events. If stablecoins continue to grow and become more closely tied to major financial markets, such as short-term funding markets, they may It will become a source of instability for the broader financial system.”💡

The researchers also pointed out that stablecoins appear to have a "$0.99" threshold. Once below this threshold, redemptions will accelerate and a run may occur. This also means that although the market prospects for cryptocurrencies such as Bitcoin are optimistic, the risks of stablecoins cannot be ignored. 🔍