The European Central Bank (ECB) analyzed in a working paper that stablecoins are heavily influenced by US monetary policy, stating that this can cause risks to the financial system. In November 2022, The collapse of FTX, a Bahamas-based cryptocurrency exchange, has shown the risks that stablecoins pose to the financial system. The collapse of the stablecoin TerraUSD in May 2022 was another example of the risks stablecoins pose to the financial system.