Stablecoins Won’t Fix Bitcoin’s Instability: Berkeley Prof.

Prof. Barry Eichengreen, an economics professor at UC Berkeley, in an op-ed published in The Guardian, said he believes stablecoins such as tether (USDT) might be stable in value and attractive as units of account, but they are flawed. His piece comes on the heels of the launch of the Gemini dollar (GUSD) by the Winklevoss twins.

Stablecoins Aren’t a Cure-All for Crypto Instability

For some, holding a stablecoin is the perfect investment as it creates a bridge between digital money and fiat currencies such as the U.S dollar. For others, keeping it as an investment makes little sense. For these type of investors, a stablecoin might hold its value over time, but it’s unlikely it will trade at a premium for the currency it tracks.

In Eichengreen’s opinion piece, he highlighted some reasons why stablecoins are not practical enough to solve bitcoin’s instability. He explained the problems inherent in the different types of stablecoins, including those that are fully…