Lukas Ruppert pfp
Lukas Ruppert
@lxn
Are Stablecoins beneficial to the US? I'd say yes. Here are the pros and cons: Contra: - Fully-reserved banking (Modus Operandi for Issuers) is expensive for the Fed with a high Interest on Reserve Balances (IORB) - A Stablecoin Run - Systemic Risk. The Fed published a report in Sep '23 comparing Stablecoins to MMFs
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Lukas Ruppert pfp
Lukas Ruppert
@lxn
- Reduced Control over Dollar Flows can limit the enforcement of sanctions and AML measures - Contrarian to the current Quantitative Tightening Policy
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Lukas Ruppert pfp
Lukas Ruppert
@lxn
Pro: - Debt Absorption. Stablecoins are set to become the largest holder of US Treasuries. Crucial in times of declining foreign appetite - Dollar Proliferation and Dominance. Dollar demand & usage in EMs is (quietly?) blowing up through Stablecoins
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Lukas Ruppert pfp
Lukas Ruppert
@lxn
- Competition in Global Regulation. Stablecoins are global by nature. Multiple top-tier jurisdictions, including Singapore, Hong Kong, and Japan have pioneered legislation - Inevitability. It is not a question of whether the digital money revolution will occur but rather how soon.
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Lukas Ruppert pfp
Lukas Ruppert
@lxn
In hindsight, it will likely be clear that money should have worked like the internet. We'll look back at this like we do on long-distance calls today. Publishing an in-depth piece on the topic soon.
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