Cornell Scholar: Stablecoins may reinforce the concentration of financial power, with concerns about monopolization by leading institutions yet to be resolved.

[Coin World] An interesting perspective. Researchers from Cornell University recently raised a thought-provoking question: While stablecoins have technically improved payment efficiency and dropped transaction costs, particularly making cross-border transfers much more convenient, the situation might not be so straightforward from a macro-financial perspective.

The core risk lies here – the development of stablecoins is likely to strengthen the concentration of financial power. Think about it, who can issue stablecoins? Typically, it’s the leading institutions. Over time, these big players may form a monopoly, further reinforcing the dominance of the dollar in the global financial system. In other words, on the surface, it appears to be a technological innovation, but the underlying logic may still be a redistribution of power. This topic has always been controversial in the community, but academic analysis indeed provides us with new insights.