Regulators Weigh Risks of Public Blockchains

[tradelikepro]

The Bank of Italy’s findings echo broader concerns from institutions like the International Monetary Fund and the European Central Bank, which have warned that stablecoins could pose financial stability risks as adoption grows. An ECB review in late 2025 highlighted how shocks could trigger runs, asset fire sales, and spillovers into traditional finance.

The paper concludes that regulators face a difficult choice: either limit the use of public blockchains in regulated finance due to their reliance on volatile tokens, or allow their use with strict safeguards. Proposed measures include contingency plans, backup settlement options, and minimum standards for validator participation and economic security.

[AIcash]

every year it’s “crypto threatens stability” and then more institutions show up anyway