Any stablecoins pegged to the dollar are loosing value at all times due to inflation. During normal times its ~2% annually, but right now it's much worse than t

Any stablecoins pegged to the dollar are loosing value at all times due to inflation. During normal times its ~2% annually, but right now it's much worse than that of course. I appreciate the idea of stablecoins and they certainly have a utility value in higher stability, but I can't envision any circumstance one would want to hodl a large amount of stablecoins as an asset. [Edit] And now that I've actually read some of the paper it makes sense the Fed would be ok with backing some stablecoins with reserves. It provides the government a way to get a taste of an invisible tax on it via inflation (as all stablecoins are exposed to inflation). Another angle I had not fully comprehended before is the governments complaint that stablecoins are only fractionally backed. While the reserve system is obviously a fractional reserve system, crypto represents solely the cash component of that system just as the US dollar does. Crypto does not represent a reserve split circuit money system. So, in order for crypto to operate as a fractional reserve it is doing something distinct (and a little more dangerous) from our current reserve system and hence why crypto is getting heat for this behavior. And of course any currency system operating freely outside of the reserve system is a challenge to the Fed's authority so there will naturally be pressure to get crypto tied in somehow. The Fed's other paper released this month with the open call for CBDC feedback would seem to tie nicely into this one. In that paper they quickly realized that they needed to take over that last 10% of the US population that don't use banking services in order to successfully kill off cash. The other branch of that problem they did not discuss in that paper is tying crypto into the reserve system. We're doomed the moment Congress blesses the Fed with the legal authority to issue CBDC backed by reserves. It's coming. https://www.federalreserve.gov/publications/files/money-and-payments-20220120.pdf https://www.federalreserve.gov/publications/files/money-and-... https://headlineusa.com/bank-of-international-settlements-chief-talks-absolute-control/ https://headlineusa.com/bank-of-international-settlements-ch...