THE 2× LOSS PROBLEM

Stablecoin “yield” doesn’t just add return — it adds structural fragility.

When multiple claims silently depend on the same redemption pipe, losses can multiply faster than reserves disappear.

This is not a pricing issue.
It’s a design issue. Custodial Stablecoins Are Not Cash

You do not own reserves in a vault.
You own an unsecured contractual redemption claim against a private issuer.
That claim only works if redemption is:
• legal
• operational
• uninterrupted

Remove access, and “par” becomes a narrative.

Scorched earth crypto legislation through enforcement is likely the worse US regulatory policy error ever made. As cash becomes CBDC, we'll make any value transferable as a currency, to be denominated in fiat of user's choice, meaning fiat no longer needed

https://twitter.com/ReggieMiddleton/status/1371894702283362313

Fiat's primary draw is two-fold:
1) It cures the liquidity, fungibility and portable ailments that plagued direct physical barter, and
2) Countries only allow their national fiat to be used to pay their mandatory taxes.

#P2PEconomy addresses 1), leaving only 2 as a use for cash