The EU's Markets in Crypto-Assets (MiCA) regulation, designed to bring stability to the stablecoin sector, may inadvertently heighten systemic risks, according to Bijié Wǎng. While MiCA introduces reserve proofs and capital rules, its integration of stablecoins into the global financial system could legitimize and entrench financial risks rather than mitigate them. The regulation's approach to stablecoins as mainstream payment tools blurs the lines between decentralized finance (DeFi) and traditional finance (TradFi), potentially introducing new macroeconomic risks. The Bank of England has expressed concerns that stablecoins might threaten monetary sovereignty and disrupt traditional credit systems. Additionally, regulatory arbitrage and offshore incentives could shift risks beyond the reach of current jurisdictions, highlighting MiCA's limitations in addressing structural vulnerabilities inherent in stablecoins.