[Bitcoin Now] Warning Over Stablecoins... Nobel Laureate Says "Oversight Severely Lacking"

Professor Jean Tirole Warns of Inadequate Oversight
Concerns Over Government Responsibility in the Expanding $280 Billion Stablecoin Market
Potential for "Bank Runs" and Costly Bailouts Highlighted

Concerns have been raised about the lack of effective oversight and regulation by governments around the world regarding the stablecoin market, which has reached a market size of $280 billion (approximately 380 trillion won). There have also been warnings that, due to the nature of stablecoins being linked to real-world assets and values, the government could be held excessively responsible if problems arise in the future.

Jean Tirole, Nobel laureate in economics and professor at Toulouse 1 University in France, said in an interview with the Financial Times (FT) on the 31st (local time), "Supervision of stablecoins is severely lacking, which is highly concerning." He added that if trust in the underlying assets is shaken, a "bank run" could occur, with depositors rushing to withdraw their funds en masse.

Stablecoins are virtual assets whose value is pegged one-to-one to assets such as fiat currencies or gold, with examples including Tether and Circle.

Professor Tirole also pointed out, "Stablecoins may appear to individual users as completely safe deposits, but they can cause losses and lead to demands for government-led bailouts, which come with high costs." He explained that if individuals or institutions mistakenly perceive stablecoins as "deposit-like products," there will be strong pressure on the government to intervene and provide relief when problems occur in the future.

It is expected that the size of the stablecoin market will continue to grow in line with the U.S. government's policy to foster virtual assets. The Donald Trump administration led the passage of a stablecoin-related law in Congress last July, allowing banks to directly issue digital assets backed by dollars and U.S. Treasury securities. The FT noted that the global stablecoin market has already reached $280 billion.

In particular, he emphasized that to manage such risks, regulatory authorities worldwide must respond thoroughly with sufficient personnel and motivation. He stated, "This is a big if," pointing out that some key figures in the U.S. administration have personal interests in virtual assets, and that there are also ideological factors at play.

Previously, it was reported that Trump Media & Technology Group, which operates the social networking service Truth Social, holds Bitcoin and related assets worth $2 billion. About two-thirds of the liquid assets of this company, where President Trump is the largest shareholder, are reportedly in Bitcoin.

Democratic lawmakers and ethics experts are also raising concerns about conflicts of interest. The Democracy Defenders Fund stated in a report last April, "As a stakeholder in virtual assets, President Trump is highly likely to benefit from the policies he is pursuing."