The European Central Bank (ECB) has questioned the view that stablecoins are a “safe haven” for investors during times of market turmoil, finding that they are actually highly influenced by U.S. monetary policy, ChainCatcher reported.

The working paper studies the connection between US monetary policy, money market funds (MMFs), and stablecoins. It argues that monetary policy, especially US dollar policy, is the key to connecting cryptocurrencies and traditional financial markets.

Stablecoins have a fixed price, usually pegged to a fiat currency (usually the U.S. dollar), and are vulnerable to shocks from within traditional financial markets, such as changes in U.S. monetary policy, such as raising interest rates.