This seems bad for 'stablecoins' given yield at a minimum offsets the real purchasing power loss due to inflation 

More like unstablecoins

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“issuer can’t pay interest or yield“ does that mean other “financial services” can?

that would make it analogous to the banks which can pay yield and the fed doesn’t

not sure I’m getting that right

Navigating the world of finance by day, pondering its flaws by night. ETH Maxi

Yes - thats correct

But lets say a bank issues a stablecoin to their customers, their customers would now have to take those funds to a 3rd party to get yield. There are a surprisingly large number of people who keep larger sums in checking accounts earning 0.1% or less, so many won't do that - they might not even know they can do that

The digitization of the dollar privatizes treasury returns to issuers - which is ofc what issuers want

That was my initial thought too, but there isn't a Fed for stablecoin issuance. It could be any number of independent financial institutions - so the issue is more to to with what I wrote here

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fair

the conflict of interest is so obvious when you take a moment to look at it

That was my initial thought too, but there isn't a Fed for stablecoin issuance. It could be any number of independent financial institutions - so the issue is more to to with what I wrote here https://warpcast.com/vinayvasanji.eth/0x47f6e932