Stablecoin

The Essence and True Impact of Stablecoins from an Accounting Perspective A Rebuttal to the View That “Stablecoins Re-Monetize Debt” Recently, many content creators have argued that stablecoins allow debt to be “re-monetized.” This claim contains a fundamental error; in particular, the term “re-” is completely at odds with the operational logic of stablecoins. Stablecoins themselves do not possess collateralization, staking, or lending functions. Unlike traditional banks, they cannot expand their capital base through deposit-taking and the money multiplier effect—where a single dollar in the banking system can be turned into several dollars in circulation through lending—but stablecoins lack this attribute entirely. ...

Analysis of the Far-Reaching Impact of the Stablecoin Bill I. New Arbitrage Models Once the U.S. Stablecoin Bill is passed, it will give rise to an entirely new chain of risk-free arbitrage. Stablecoin issuers will attract U.S. dollar deposits by issuing stablecoins. Since holding stablecoins does not generate any interest, holders effectively forgo the interest income they would have earned on bank deposits. After obtaining these funds, issuers will use them entirely to purchase short-term U.S. Treasury bills. At the current interest rate of 4%, this amounts to arbitrage through deposit absorption at zero cost. For holders, the choice is either to invest in high-risk assets like Bitcoin to offset the loss of interest income or to bear the opportunity cost of holding stablecoins. In the long term, the zero-interest characteristic will significantly inhibit the adoption of stablecoins for daily payments, with the only beneficiaries being the stablecoin issuers. The higher U.S. interest rates rise, the greater this arbitrage opportunity becomes. ...

Stablecoin Series: Understanding the Underlying Logic of Global Finance Through the Essence of Money Today is May 31, 2025, and we’re wrapping up the final installment of our stablecoin series. Unlike the first two episodes, which focused on the micro level, this episode shifts to the macro level to discuss fundamental issues related to money—no matter how many new digital currencies are issued or how many new financial instruments are created at the micro level, these most basic principles will remain unshaken. ...