220816 Stablecoin Stablecoins aren't safe just because they survived 'Crypto Winter.'

Stablecoins aren’t safe just because they survived ‘Crypto Winter.’

-The largest stablecoin, Tether, has managed to weather the crypto winter better than its counterparts, but this does not mean that the coast is clear.

-Stablecoins pose systemic risks by following patterns similar to the private currencies of the past, which ultimately created more problems than they solved.

-The complex technology behind stablecoins has prevented us from seeing a simple truth: they are no different from the private currencies of the free banking era.

-The decreasing “moneyness” of private banknotes and stablecoins is due to technological shifts and reputation formation.

-Stablecoins becoming more money-like does not mean they improve on government-issued currency.

-A government monopoly on issuing money has been shown to provide needed financial stability and allows for necessary control over the money supply.

-The U.S. is headed toward a strategy of coexistence with private currencies, but this is a mistake.


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