Nobel Prize-winning economist Jean Tirole has issued a stark warning about the systemic risks posed by stablecoins, stating that inadequate regulation could force governments to prepare multibillion-dollar bailouts if these digital assets collapse during a financial crisis. The 2014 economics laureate emphasized that stablecoins are perceived by retail and institutional users as "perfectly safe deposits" despite carrying hidden risks.
Tirole specifically highlighted concerns about stablecoins' reserve assets, primarily U.S. Treasury bonds, which offer relatively low yields. He warned that if these low-yielding bonds become unattractive, stablecoin issuers might turn to riskier assets in search of higher returns, exacerbating systemic vulnerabilities. "If it is held by retail or institutional depositors who thought it was a perfectly safe deposit, then the government will be under a lot of pressure to rescue the depositors", Tirole stated in an interview with Financial Times.
The stablecoin market has experienced explosive growth, with market capitalization rising by $16 billion in the past month alone to reach $280 billion according to McKinsey data. Tether (USDT) dominates with 60% market share. Projections suggest the market could surpass $400 billion by end of 2025 and reach $2 trillion by 2028.
Tirole expressed particular concern about the potential for a "run on the asset" if investors begin doubting the underlying reserves, which could cause stablecoins to lose their peg to sovereign currencies. He noted that proper global supervision could mitigate these risks, but criticized U.S. policymakers for having "personal financial interest in cryptocurrency" beyond ideological motivations.