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J.P.Morgan's Analysis Warns the Risk of "System Gridlock" with Stablecoins
Summary: An analysis released on September 5, 2019, by J.P.Morgan revealed that the new wave of stablecoins led by Facebook's Libra have a chance of failure in periods of network stress. This could be due to the fact that the stablecoins lack short-term liquidiy of other payment systems and their newtork would not be able to ...
An analysis released on September 5, 2019, by J.P.Morgan revealed that the new wave of stablecoins led by Facebook's Libra have a chance of failure in periods of network stress. This could be due to the fact that the stablecoins lack short-term liquidiy of other payment systems and their newtork would not be able to handle the growth of their usage, as per the report. In J.P.Morgan released caution statment to their clients, "As currently designed and proposed, they do not take into account the microstructure of operating such a payment system. The risk of payment system gridlock, particularly during periods of stress, could have serious macroeconomic consequences."
Author: Sofia Cabrera
Tags: Facebook,J.P.Morgan,Libra,Stablecoins
Link: J.P.Morgan's Analysis Warns the Risk of "System Gridlock" with Stablecoins [Copy]
