IMF Former Chief Economist: Relaxing Stablecoin Regulations Combined with Bank Deregulation Could Trigger a Systemic Financial Crisis

Deep Tide TechFlow News, April 27 — According to Caixin, former Chief Economist of the International Monetary Fund (IMF) Kenneth Rogoff warned that the Trump administration’s push for financial deregulation, especially the relaxation of bank capital requirements and regulatory transparency, is significantly increasing the risk of a systemic financial crisis in the United States in the future.

Kenneth Rogoff pointed out that one of the important reasons supporting deregulation is to allow traditional banks to maintain innovation and market competitiveness in the face of competition from cryptocurrencies, especially stablecoins pegged to the US dollar. If cryptocurrency regulations are relaxed simultaneously and combined with deregulation of the traditional financial system, it could trigger a “double deregulation” risk, ultimately leading to systemic collapse. Although a full banking crisis may not erupt in the short term, the risk has clearly increased, and the regulatory balance between stablecoins and the traditional banking system is becoming a critical hidden danger.