Nobel prize winner Krugman says stablecoins lack practical use

American economist Paul Krugman, a Nobel laureate in economics, criticized stablecoins in a May 30 blog post, calling them economically useless and potentially dangerous, according to CryptoSlate. Krugman argued that stablecoins cannot be used for ordinary purchases and offer no advantages over traditional payment methods such as debit cards, Venmo or wire transfers. He said their only distinguishing feature is anonymity, which he claimed primarily benefits criminals engaged in money laundering, extortion and illegal drug transactions. Krugman warned that the growing adoption and legitimation of stablecoins could pose serious risks to financial stability by making it easier for illicit actors to operate.