Nobel laureate Paul Krugman: stablecoins have no obvious useful function and only facilitate crime.

According to a report by cryptoslate on June 2, in a blog post, 2008 Nobel Prize winner in Economics Paul Krugman stated that "stablecoins have no obvious useful function" and believes their only economic rationale is "to facilitate criminal activities" such as Money Laundering and extortion. He compared stablecoin issuers to the "pre-war banks" of the 19th century, calling them a new type of "shadow banking" that could evade regulation and pose risks similar to the 2008 financial crisis.

Nic Carter, co-founder of Coin Metrics, responded on social media, stating that Krugman's views on stablecoins are "extremely wrong" and pointed out that over 100 million stablecoin users globally prove their actual utility. Paul Fusaro, president of Bitwise Asset Management, also supports Carter's viewpoint.