According to New Zealand central bank governor Adrian Orr, stablecoins are not as “stable” as they think.
According to information provided by Bloomberg, Orr, “Stablecoins are not stable. “They are as solid as the balance sheet of the person issuing that stablecoin.” said.
In the past, some stablecoins Financial difficulties experienced by the issuing company fluctuates due to falls below the required level was seen. For example TrueUSD (TUSD), 1 dollar level It fell below that level and still hasn’t reached that level yet.
After Circle revealed some of its funds were sitting at Sillicon Valley Bank USDC also reached 95 cents levels had fallen.
Orr noted that fiat currencies are different from cryptocurrencies such as stablecoins. by independent central banks He said he was protected.