Wall Street Journal Flags Stablecoins as Private Money, Reports 84% Tied to Illicit Activity

According to the Wall Street Journal on May 26, stablecoins function as private money and may pose structural risks to the financial system. Chainalysis data cited in the article shows stablecoins account for 84% of crypto-related illicit activities including sanctions evasion and money laundering. The article notes that despite being pegged to the U.S. dollar, stablecoins like USDT and USDC can deviate from the $1 price target due to their fragmented, private infrastructure. Currently, stablecoins are primarily used for crypto trading, with real-economy payments accounting for less than 1% of use.
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