Are Stablecoins Safe? Should You Own Them?

How stablecoins are similar and different from other monetary assets. What are stablecoin risks. Why central bank digital currencies are one of the biggest threats to stablecoins.

Topics covered include:Why the Federal Reserve and other central banks are exploring issuing their own digital currenciesWhat is the difference between public and private moneyHow deposit insurance and central bank actions prevent runs on private moneyHow money market mutual funds are a type of stablecoinHow true stablecoins and algorithmic stablecoins differWhat is driving the demand for stablecoinsWhat are the risks of stablecoins

Thanks to LinkedIn and Policygenius for sponsoring the episode.

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Show Notes

Money and Payments: The U.S. Dollar in the Age of Digital Transformation January 2022—Board of Governors of the Federal Reserve System

Taming Wildcat Stablecoins by Gary B. Gorton and Jeffery Zhang

Money Stock Measures - H.6 Release—Board of Governors of the Federal Reserve System

Top Stablecoin Tokens by Market Capitalization—CoinMarketCap

Transparency—Tether

Report on Stable Coins, November 2021—Various US Agencies

Built to Fail: The Inherent Fragility of Algorithmic StablecoinsDr. Ryan Clements

The Quest for a Truly Decentralized Stablecoin by Brady Dale—Coin Desk

Cryptocurrency Doesn’t Amount to Much by Steve H. Hanke and Matt Sekerke—The Wall Street Journal

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333: How The Covid Shock Nearly Destroyed The Financial System

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