More likely stablecoins will reinforce dollar dominance & cause the next systemic banking crisis bsky.app/profile/mcop...
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The problems Eswar Prasad identifies are real, and he is right that middle/low-income countries bolstering monetary/fiscal/regulatory policies could increase the international use of their currencies. But all that is likely to be on the margin of the š systemic-level effects of stablecoins.
aug 31, 2025, 5:16 pm ā¢ 5 0 ā¢ view
Isn't this somewhat ignoring the fact that Trump is actively undermining the stability of the Dollar via his actions re: the Fed ? (Ie Dollar being made less attractive as a "safe harbour" currency anyway?)
aug 31, 2025, 5:30 pm ā¢ 1 0 ā¢ view
My first thought.
aug 31, 2025, 6:08 pm ā¢ 1 0 ā¢ view
Hear hear
aug 31, 2025, 5:11 pm ā¢ 0 0 ā¢ view
What does this change for someone who just uses stablecoins to make international payments more quickly and with much lower fees? Or because you get 4.5% APY simply by holding USDC? I see where the fear is coming from but Iām trying to link it up with why people want to use this technology.
aug 31, 2025, 6:00 pm ā¢ 0 0 ā¢ view