In my last blog post, I raised concerns about the GENIUS Act that regulates digital currencies like USDC and Tether, but lacks critical guardrails to protect user rights. One glaring issue is the potential for authorities to freeze or seize stablecoins from wallets without judicial oversight—a power that threatens financial autonomy. But stablecoins are more […]
Does the GENIUS Act Outsource Creation of a Programmable CBDC Capable of Surveilling & Controlling its Users? I’ve addressed the pros and cons of the GENIUS Act of 2025, addressing how it can pull lendable reserves from the banking system and impact lending and interest rates. Now, I’ll address the “programmable money” risk. The GENIUS […]
Imagine a world where AI agents don’t just answer your questions or generate content—they actively manage your finances, execute trades, pay for services, and negotiate deals, all in real time, across borders, with minimal human intervention. This isn’t science fiction; it’s the future being shaped by the powerful convergence of agentic AI and stablecoins. Together, […]
Bottom line: In a battle for margin, between banks and tech, tech will win. And bank lobbying to change the rules won’t work. Tech will innovate around any tweaking of the rules. The real solution is to change the GENIUS Act to enable stablecoins to act like deposits to fuel bank lending. The stablecoin market […]
Imagine a world where sending money costs pennies, transactions settle in seconds, and you can seamlessly move between digital and real-world spending without losing a fortune to fees. This isn’t a distant dream—it’s the reality being built by stablecoins, the unsung heroes of the crypto universe. In my previous post, I explored the economics of […]
Case Study: Sending Money from USA to the Philippines Introduction Sending money internationally, such as from the US to the Philippines, often involves high costs and slow processing times. Stablecoins, specifically USDC-SPL—Circle’s USD Coin issued on the Solana blockchain, leveraging Solana’s high-speed, low-cost infrastructure for near-instant transfers with minimal fees—offer a faster, more cost-effective alternative. […]
Cash is fungible, it flows where opportunity lies. When the government injects money into the economy, it often ends up in private hands, hitting commercial bank deposits and kicking off the fractional reserve lending cycle. This sounds like a win for growth, but there’s a catch. While banks lend with profit in mind under strict […]
Picture this: digital dollars zipping across blockchains, powering instant global payments with a smartphone tap. That’s the stablecoin revolution, and banks are itching to cash in. With Tether pocketing $13 billion in profits in 2024 and forecasts of 10X growth from 2024 to 2028, giants like JPMorgan and Bank of America are diving in, chasing […]
In our previous post, “Stablecoins, the Eurodollar System, and U.S. Monetary Sovereignty,” we explored how foreign-issued stablecoins like Tether (USDT) act as tokenized Eurodollars, eroding U.S. control by minting dollar-denominated IOUs offshore. With the $250 billion stablecoin market projected to hit $3.7 trillion by 2030, Tether’s $143 billion market cap leads, but its El Salvador […]
The Eurodollar system, a sprawling network of U.S. dollar-denominated loans issued by foreign banks, accounts for approximately one-third of all dollars in circulation—roughly $12 trillion. As Milton Friedman aptly described, Eurodollars are “a bookkeeper’s pen,” mere bookkeeping entries representing dollar-denominated IOUs held in non-U.S. bank accounts. These offshore liabilities, created by foreign banks and central […]
In the cutthroat arena of technology and finance, joint ventures (JVs) promise to pool expertise for breakthroughs. But as the old saying goes, “A camel is a horse designed by committee.” This quip nails the chaos of partnerships where too many equals with overlapping strengths churn out mediocrity. The recent buzz about America’s biggest banks—JPMorgan […]
Picture a bank run so fast it’s over before you blink—billions in deposits vanishing into stablecoins in milliseconds. Not like Silicon Valley Bank or First Republic, where runs unfolded over hours or days. Stablecoins, under proposed laws like GENIUS and STABLE, could turbocharge this chaos, prioritizing stablecoin holders over regular depositors and creating a game […]
Remember my last post, Could Proposed Stablecoin Laws Cause Credit Collapse & Depression? I warned that the GENIUS and STABLE Acts could siphon $1 trillion from U.S. bank deposits by 2028, potentially slashing lending by up to 40% and spiking interest rates, risking a recession worse than 2008. With stablecoins projected to hit $3.7 trillion […]
By 2028, the U.S. Treasury estimates that stablecoins—digital currencies pegged to the dollar—could hold $2 trillion worldwide. If we assume that half of this ($1 trillion) comes from U.S. bank deposits, with the rest coming from outside of the US, that would be $1 trillion drained from the $18 trillion in U.S. bank deposits. Proposed […]
