Interesting article on stablecoins, their fight with banks, and the possible risks faced in their adoption. I can’t lie, I’m personally very negative on crypto and stablecoins. I don’t see much purpose in them aside doing what can already be done but with less regulation and more scammers. I’m also concerned about how outflow of money from traditional banking could lead to a very serious liquidity crisis in the traditional financial system as mentioned in the article.
Not3Beaversinacoat on
Prediction: Crypto loses.
Always.
HD_Thoreau_aweigh on
I’ve asked CGPT to ELI5 this to me multiple times and I still don’t understand it:
Assuming stable coin issuers are allowed to function as banks and offer interest to holders, how is this more appealing to an investor compared to whatever non-crypto, non-stable coin financial instrument that offers equivalent interest / ROI?
No matter how it is phrased to me, it always just seems like you’re adding an extra step by investing in the stable coin, whose issuer then invests your money in the very instruments you yourself could have purchased directly.
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[archive link](https://archive.is/20260202095317/https://www.ft.com/content/0fe2232a-4689-4296-b4cd-8c07c326c48c#selection-1587.0-1587.66)
Interesting article on stablecoins, their fight with banks, and the possible risks faced in their adoption. I can’t lie, I’m personally very negative on crypto and stablecoins. I don’t see much purpose in them aside doing what can already be done but with less regulation and more scammers. I’m also concerned about how outflow of money from traditional banking could lead to a very serious liquidity crisis in the traditional financial system as mentioned in the article.
Prediction: Crypto loses.
Always.
I’ve asked CGPT to ELI5 this to me multiple times and I still don’t understand it:
Assuming stable coin issuers are allowed to function as banks and offer interest to holders, how is this more appealing to an investor compared to whatever non-crypto, non-stable coin financial instrument that offers equivalent interest / ROI?
No matter how it is phrased to me, it always just seems like you’re adding an extra step by investing in the stable coin, whose issuer then invests your money in the very instruments you yourself could have purchased directly.