2 ms·

I think it's referring to stablecoins like USDC more than traditional crypto. Also, why would they wait until it becomes a thing? It's clearly just getting big

I think it's referring to stablecoins like USDC more than traditional crypto. Also, why would they wait until it becomes a thing? It's clearly just getting bigger so might as well do something before it actually becomes a "real" competitor.

notahacker 6y ago
The paper does also say stablecoins are more likely to widely used as money than crytocurrency (if properly regulated). But it also acknowledges that they carry significant counterparty risk, especially as holding asset backing is unprofitable and so issuers are incentivised not to hold the assets they claims to hold. And the reality is that stablecoins aren't really used for anything other than buying crypto on offshore exchanges. (tbf to the paper, apart from the sentence highlighted by the OP it's pretty level-headed about actually existent crypto)