HomeStablecoinsAre Stablecoins the Camel's Nose for Central Banks?

Are Stablecoins the Camel's Nose for Central Banks?

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Jeff and Dr. Murphy discuss a recent interview with IMF economist Manmohan Singh in the context of central banks co-opting digital technology for bad ends.

Find Manmohan Singh’s Interview:
Janet Yellen, “I was wrong about inflation”:
Kristoffer Hansen on the basics of central bank digital currencies:
Block and Barnett on Maturity Mismatching:

00:00 Introduction
00:26 Yellen on Inflation
02:04 Stablecoins Overview
03:47 What are Stablecoins?
08:39 How Stable are Fixed Exchange Rate Stablecoins?
13:04 Central Bank ‘Digital Currencies’
20:33 Seigniorage in a Digital Currency Economy
25:36 ‘FinTech’ and Stablecoins
29:18 How Much Actual Money is There?
35:24 Regulation and Stablecoins

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19 COMMENTS

  1. Appreciate the detailed breakdown! I have a quick question: I'm using a SafePal wallet with USDT and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How can I transfer them to Binance?

  2. Stablecoins were a mind-bogglingly stupid idea from the start. They basically combine all the drawbacks of both government fiat money, and of cryptocurrency, with none of the most significant advantages of either, while adding in a ton of new drawbacks never before seen in an exchange mechanism.

    Also, calling something "stable" because it's pegged to the US dollar is a bit rich.

  3. What are you guys trying to pull? Saying that the cost of producing paper fiat currency is a factor compared to the cost of producing central bank digital money is absolutely ridiculous! It costs just $0.14 to print a $100 dollar bill. That means the government makes $99.84 in profit for every one they print and what you are implying is that a move to digital is motivated by the savings of that $0.14? Seriously, they can create the $0.14 out of thin air too!

  4. What some stablecoins are doing, like moneyonchain, is using bitcoin ( or any other comodity really) and then sell the volatility to another 2 tokens. And its all on a smart contract that can be audited. I find this very interesting and ingenious. As long as bitcoin doesnt fall 95% in price the system keeps functioning.

  5. Our crypto vigilante newsletter predicted the possibility of a death spiral in Terra/Luna in the March issue, let me know if you want to do an interview with the analyst. He also has a lot to say about privacy coins and the issue of fungibility. Something that could be important and that could eventually undermine bitcoin and ether.

  6. The FED has lost it and the sad fact is, it's pretty obvious we are headed for hyperinflation. I think stores better have tight security because when people can't afford to feed their families, things might get ugly

  7. Stabel coins are also used when you have e.g. Cardano and you want to swap it for e.g Polkadot, that there might be no one that wants to do the opposite trade. But there always is a market Cardana Usdt and then you can go from Usdt to Polkadot. It solves the double coincidence of want problem much like money solves it for bartering. As long as all these coins have wrapped versions on 1 blockchain, you can trade them against each other on a distributed exchange (a smart contract on the block chain)

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