Altcoin News: JPMorgan: Stablecoins Can Possible Grow, but Not Without Risks
September 9, 2019, by Marko Vidrih on ALTCOIN MAGAZINE
Analysts at JPMorgan, a major banking conglomerate, believe that stablecoins like Libra can grow significantly, but there are certain risks in such projects.
The JPMorgan analytics team, led by Joshua Younger, said that stable cryptocurrencies, including Libra, can grow “substantially and ultimately shoulder a significant fraction of global transactional activity,” as Bloomberg reported Thursday.
Researchers noted that stable cryptocurrency projects do not take into account the microstructure of the payment system. In case of stressful situations, such payment systems may be blocked, which will lead to serious economic consequences.
Another risk of such projects is negative inflation. Stablecoins should be provided with a basket of fiat currencies and government bonds, but government currencies are now showing negative inflation. In addition, there are trends indicating a global easing of monetary policy.
Jerome Powell, chairman of the Fed’s Board of Governors, recently said that consumers don’t need government cryptocurrencies and stablecoins.
Author: Marko Vidrih
