Reserve Bank of New Zealand Governor Warns: Stablecoins Unstable, Not to Be Trusted!

Adrian Orr, the Governor of the Reserve Bank of New Zealand, has expressed concerns over stablecoins, asserting that they are not as stable as their name suggests. According to a recent report, Orr highlighted the potential risks associated with stablecoins, which are cryptocurrencies pegged to a stable asset like fiat currency or commodities. He emphasised the need for regulatory oversight and cautioned against the misconception that stablecoins are inherently stable, citing the importance of understanding their underlying mechanisms and potential impacts on financial stability.