Recently, the turmoil in the stablecoin market has attracted the attention of financial experts. An economist pointed out in a recently published article that the potential risks present in the stablecoin sector are worth being vigilant about.

Looking back at 2017, USDT faced a trust crisis due to questions about the authenticity of its reserve assets. This March, USDC also experienced severe redemption issues because some of its reserve funds were held at the now-bankrupt Silicon Valley Bank. These events highlight that even stablecoins pegged to fiat currencies are not completely "stable".

What is even more concerning is that certain algorithmic stablecoins have experienced catastrophic "death spirals," further deepening market worries about the safety of stablecoins.

The scholar emphasizes that due to the characteristics of stablecoins resembling public goods, it is necessary to implement appropriate regulation for them. However, in responding to the stablecoin boom, we need to deeply understand its essence, weigh the pros and cons, and build an ecosystem conducive to the healthy development of the digital economy.

With the continuous development of the digital currency sector, finding a balance between innovation and risk control has become a challenge faced by both regulators and market participants. In the future, establishing a sound regulatory framework while maintaining an open attitude towards technological innovation will be key to promoting the healthy development of digital finance.