The Unstable State of Stablecoins

An overview of the stablecoin market’s growth, business cases, and regulatory uncertainties (as of June 2021)

https://www.theblockcrypto.com/data/decentralized-finance/stablecoins

“Priority one: stablecoins are not as safe as they seem and when they collapse, they bring everyone else down with them. Priority two: as long as they give the impression of being the functional equivalent of safe money, they will always create a perverse incentive for people to have bad money chase out good money, and people will always drive into these places right until the illusion of safety is dispelled. Priority three: all risks need to be understood from a systemic perspective, and individual stablecoin issuers are not responsible for, nor are they structured to think as stewards of the whole system. So wherever that line is between privacy and law enforcement, transparency and freedom, it is not a line that individual stablecoin issuers are equipped to draw on their own.”

- Rohan Grey, primary author of the STABLE Act

“We have already regulated banking for this exact reason. We already have limits on who can engage in the business of banking without a license and the point is that those limits should apply to stablecoins. On one hand, the argument is ‘we don’t think stablecoins are the same as banking instruments,’ and on the other hand, the argument is ‘we think everyone should be able to engage in banking activity without a license.’ Different people have different contention with regulation. My point is, these should be regulated like banks.”

-Rohan Grey, primary author of the STABLE Act

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FinTech executive exploring blockchain and digital money. I write to learn. Connect with me at www.linkedin.com/in/kellyrobertchambers/

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Kelly Robert Chambers

FinTech executive exploring blockchain and digital money. I write to learn. Connect with me at www.linkedin.com/in/kellyrobertchambers/