Risks to Payment Infrastructure from an Ethereum Price Crash, According to a Paper by the Bank of Italy

Claudia Biancotti, an economist at the Bank of Italy, has published a paper discussing the potential threats to the stability of payment infrastructures posed by a crash in the token prices of permissionless blockchains, exemplified by the cryptocurrency Ethereum (ETH). Permissionless blockchains are defined as chains where anyone can participate in transaction verification (validator activities), operated by a decentralized network of independent validators. The paper also addresses the exchange of assets such as stablecoins, tokenized stocks, and bonds...