Deputy Treasury Secretary: Stablecoin redemption issues will eventually create operational risks

Nellie Liang, the U.S. Treasury Undersecretary for Domestic Financial Affairs, said Tuesday that stablecoins run the risk of not having a true dollar reserve, and while stablecoin issuers typically say they have one-to-one backing, Liang said: “During times of stress, around redemption Stablecoin assets may not be able to provide $1 under the issue of redemption and undisclosed fees, and redemption issues will ultimately create operational risks.” Earlier this month, the Federal Reserve Bank of New York said stablecoins were unlikely to be the future of payments, Bitteux previously reported.