Pain ahead for algorithmic and non-cash backed stablecoins: IMF director

Pain ahead for algorithmic and non-cash backed stablecoins: IMF director


The International Monetary Fund (IMF)’s director of capital markets believes there could be further failures of “coin offerings,” including algorithmic stablecoins amid the ongoing crypto winter.

In the interview with Yahoo Finance on July 27, Tobias Adrian, director of monetary and capital markets for the IMF stated that there could be further failures of some coin offerings, in particular algorithmic stablecoins:

“We could see further selloffs, both in crypto assets and in risky asset markets, like equities… there could be further failures of some of the coin offerings — in particular, some of the algorithmic stablecoins that have been hit most hard, and there are others that could fail.”

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The IMF director also noted on Wednesday that he saw  “some vulnerabilities” for certain fiat-backed stablecoins, referencing Tether,

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