TechFlow news, June 2 — According to cryptoslate, Paul Krugman, the 2008 Nobel laureate in economics, stated in a blog post that "stablecoins have no obvious useful function" and argued their sole economic rationale is "facilitating criminal activities" such as money laundering and ransom demands. He compared stablecoin issuers to 19th-century "wildcat banks," describing them as a new form of "shadow banking" that could evade regulation and trigger risks similar to the 2008 financial crisis.
Nic Carter, co-founder of Coin Metrics, responded on social media, calling Krugman's view on stablecoins "extremely wrong" and pointing out that over 100 million stablecoin users worldwide demonstrate their practical utility. Paul Fusaro, president of Bitwise Asset Management, also supported Carter's position.
