New, interesting and relevant: Fed / Yale paper on stablecoins and wildcat banking.
"Taming wildcat stablecoins"
papers.ssrn.com/sol3/papers.cf…
"Taming wildcat stablecoins"
papers.ssrn.com/sol3/papers.cf…
Love this in the opening paragraph... Passive/aggressive choice of terminology... "The first category of cryptocurrencies includes those not backed by anything, like Bitcoin. We call these “fiat cryptocurrencies.” Their defining feature is that they have no intrinsic value."
"Finally, we note the urgency of this project. Some policymakers may view stablecoins as an up-and-coming financial innovation that does not currently pose any systemic risk and therefore believe that the best strategy is to wait to see how things play out....
That would be a mistake, because this is precisely when policymakers need to act. If policymakers wait a decade, stablecoin issuers will become the money market funds of the 21st century—too big to fail—and the government will have to step in with a rescue package whenever...
... there’s a financial panic. In addition, preserving the monetary sovereignty of the government is crucial for monetary policy. Policymakers should learn from history and not make the same mistakes again."
To be clear .. this is an excerpt from the paper .. not my opinion.
To be clear .. this is an excerpt from the paper .. not my opinion.
Rebuttal from @nic__carter : coindesk.com/why-central-ba…
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