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Preventing a Stablecoin Liquidity Crisis - Liberia news The New Dawn Liberia, premier resource for latest news

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Preventing a stablecoin liquidity crisis


Preventing a stablecoin liquidity crisis
Aug 03,2021 - Last updated at Aug 03,2021
LONDON Liquidity is to the modern economy what lubricant is to a car engine. Provide enough of it, and things run smoothly; come up short and the result is a red-hot, smoke-spewing mess. But whereas lubricating oil is easy to gauge, financial liquidity is here today and gone tomorrow. A financial crisis is always around the corner and the next one could result from the rapid rise of cryptocurrencies and especially so-called stablecoins.
A financial crisis is another name for the sudden drying up of liquidity. Before the 2008 global financial meltdown, private financial institutions were busy creating it, slicing and dicing low-quality mortgages and combining them into financial assets that were liquid and attractive to hold until one day they weren’t. Panic-gripped financial players suddenly began dumping everything in their portfolios, including apparently ultra-safe money-marke ....

New York , United States , City Of , United Kingdom , Letitia James , Andres Velasco , Jefferyy Zhang , Mario Draghi , Yale School Of Management Garyb Gorton , European Central Bank , London School Of Economics , Columbia University Guillermo Calvo , School Of Public , Yale School , New York Attorney General Letitia James , Columbia University , Guillermo Calvo , President Mario Draghi , Public Policy , London School , Project Syndicate , புதியது யார்க் , ஒன்றுபட்டது மாநிலங்களில் , நகரம் ஆஃப் , ஒன்றுபட்டது கிஂக்டம் , லீடிஶிய ஜேம்ஸ் ,