ECB Working Paper: The role of stablecoins as a safe haven for crypto is debatable

A recent study as part of the European Central Bank’s (ECB) working paper series concluded that stable currencies are susceptible to shocks arising from changes in US monetary policy. Contractionary shocks cause stablecoins to react negatively, being even more relevant than traditional crypto shocks to stablecoins, while money market funds (MMFs) thrive. ECB paper: stablecoins are susceptible to (…)