There’s a growing number of stablecoins, a majority of the USD denominated stablecoins with the goal to be backed by 1 to 1 the dollar, usually backed by t-bills.
Then you have others that are pegged to the dollar but backed by defi loans like with DAI and GHO, or like USDe which is a synthetic dollar backed by crypto assets and short futures positions.
So, here’s a way to think about it: Having a wide variety of large-cap stablecoins with deep liquidity is actually better for consumers.
As the digital economy shifts toward dollarization, we don’t want all that digital dollarization concentrated and dependent on a few entities.
Think about how many banks are out there. As of 6/30/2024, data from the FDIC shows there are 4,548 FDIC insured banks. With massive volume….
There’s a growing number of stablecoins, a majority of the USD denominated stablecoins with the goal to be backed by 1 to 1 the dollar, usually backed by t-bills.
Then you have others that are pegged to the dollar but backed by defi loans like with DAI and GHO, or like USDe which is a synthetic dollar backed by crypto assets and short futures positions.
So, here’s a way to think about it: Having a wide variety of large-cap stablecoins with deep liquidity is actually better for consumers.
As the digital economy shifts toward dollarization, we don’t want all that digital dollarization concentrated and dependent on a few entities.
Think about how many banks are out there. As of 6/30/2024, data from the FDIC shows there are 4,548 FDIC insured banks. With massive volume….
