Why Stablecoins Could Be the Trojan Horse of Digital Finance
Not all stability is created equal—at least not in crypto. Venture capitalist Jeremy Kranz argues that the burgeoning stablecoin market, now exceeding $300 billion in circulation, may pose hidden risks rather than offering the safety investors expect. Kranz, head of Sentinel Global, labels these tokens as "central business digital currencies," highlighting how private issuers retain control over access and transactions.
Asset-backed stablecoins face redemption risks during mass withdrawals, while algorithmic variants remain vulnerable to market glitches that could break their pegs. Despite these concerns, Wall Street's growing interest and Washington's regulatory scrutiny underscore the sector's expanding influence. Proposed legislation like the U.S. GENIUS stablecoin act remains contentious, straddling the line between innovation and oversight.
