【Analysis: Interest Payments on Stablecoins Should Be Prohibited, or Efficiency and Stability Will Be Compromised】According to Golden Finance, Hans Gersbach and other scholars from the KOF Economic Research Institute of ETH Zurich stated during their speech titled “Are Stablecoins Contagious?” at the **World Economists Conference (ESWC)** on the 18th: “In an environment with multiple issuers competing, if one issuer starts paying interest, then other issuers will have no choice but to follow. This will lead to overall inefficiency and instability in the (stablecoin) system.” They added: “The interest payment mechanism of such stablecoins is contagious and may ultimately trigger a series of problems. Therefore, prohibiting interest payments through regulation is a core measure to maintain a high-efficiency stablecoin market.” The scholars also pointed out that in the so-called “secondary market for stablecoins,” if investors do not redeem directly from the issuer but circulate through market trading, panic may arise if adjustments fail, thereby also necessitating regulation.

#ETH