CoinScoopFederal Reserve Research Highlights Double-Counting Risks of Stablecoins in Money Supply Metrics
A staff note from the Federal Reserve explores the theoretical classification of stablecoins within M1 and M2 money supply aggregates. The research indicates that while classification is possible in theory, practical challenges such as reserve overlaps and offshore circulation prevent an accurate measurement of liquidity, potentially leading to the same dollar being counted twice.
Summaries are written by AI from the original article. Not investment advice.