Stablecoins have become an integral part of the cryptocurrency market, yet economist Paul Krugman expressed doubts about their practical use, sparking wide discussion.
Paul Krugman's View on Stablecoins
Paul Krugman, Nobel Laureate in Economics, recently stated in his Substack post that stablecoins have no useful function. He questioned their necessity compared to traditional payment methods like debit cards or transfers. According to him, the main differences lie only in the anonymity of transactions. Krugman argues that these cryptocurrencies are mainly used for financial crimes.
Response from Nic Carter and Experts
Nic Carter, co-founder of CoinMetrics, disagreed with Krugman, stating that he is remarkably misinformed about the subject. He noted that over 100 million users actively employing stablecoins validate their effectiveness for various purposes, including P2P and B2B transfers. Carter also cited statistics showing an increase in their usage over the past years.
Future of Stablecoins and Their Role
Despite Krugman's criticism, stablecoins continue to gain traction in the financial world. Legislative initiatives such as the GENIUS Act are promoting the legitimacy and regulation of these cryptocurrencies in the U.S. Active discussions regarding their potential are even taking place at the level of political figures like Donald Trump. Time will reveal what role stablecoins will play in the global financial system.
Paul Krugman's criticism of stablecoins raises important questions that will be debated in the crypto industry. However, expert opinions show that the usage of these tokens continues to grow, potentially changing the future of digital finance.