Chapter 3: Banking the Unbanked*

In short, the predominant legal use of stablecoins is not for payments, but for speculative trading. They aren’t as stable as they claim to be, and the stability they do have arises from free-riding on the US banking system and monetary policy – and as we’ll come back to, if stablecoins are able to keep gaining market share, these parasites might eventually endanger their hosts. Stablecoins are…