A Nobel Prize-winning economist has issued a warning about the risks associated with stablecoins, suggesting they outweigh the benefits. Despite gaining popularity following the U.S. GENIUS Act's regulatory framework in July 2025, stablecoins like Tether's USDT are criticized for their potential to collapse under financial stress, akin to pre-2008 derivatives. The economist highlights regulatory gaps, including unclear redemption rules and the risk of stablecoin platforms operating as shadow banks without adequate oversight. The expert advocates for public digital payment systems to meet the demand for faster, cheaper, and programmable transactions, rather than relying on private stablecoins.