A recent report by the U.S. Treasury Department raises concerns over the rapid growth of stablecoins, suggesting they pose risks to financial stability and should eventually be replaced by a state-backed CBDC. The Treasury warns that as stablecoin issuers like Tether and Circle increasingly buy U.S. Treasuries, a potential collapse of a major stablecoin could trigger disruptive "fire-sales" of these assets. While stablecoin advocates argue that they support the dollar, the Treasury believes a U.S.-issued CBDC would be a safer alternative for digital transactions. Source: Decrypt
