Federal Reserve Bank of NY Lays Out Possible Stablecoin Scenarios

Because the stablecoins would effectively act like a pass-through central bank digital currency, their pegs – fixing the price to $1, for example – would come with guaranteed stability. In times of financial panic, however, large migrations of regular commercial bank deposits into narrow bank stablecoins could disrupt lending and could increase the Fed’s balance sheet to accommodate the demand from stablecoin issuers.