Stablecoins expand international demand for US dollars
The strategic value of stablecoins lies in generating net new international demand for the US dollar rather than cannibalizing domestic bank deposits.
The argument
The speakers argued that bank lobbying against stablecoin yields is misguided because the primary adoption driver is international users seeking dollar access. They noted projections that stablecoins could reach $2.7 trillion by the end of the decade, representing a significant expansion of the dollar's global reach.
The thesis, stress-tested
✓ What validates it
- ✓Stablecoin market cap approaching the projected $2.7 trillion target
- ✓Increased international adoption metrics in emerging markets
▸ Risks discussed
- ▸Regulatory pushback from domestic banking lobbies
- ▸Potential distortions to the banking system if scale grows too large
Hear it yourself
"The banks realized, like, oh, you can just, like, find a way to make it a rewards program, and then, basically, it just pays yield. Right? So, Thomas, you're about to jump in. No. No. No. I I agree. I mean, that's actually, like, how Coinbase frames it right now. Right? If you have, like, USDC on the platform, it's like, oh, here's your, reward. It's not like, Here's your loyalty reward for being loyal to having your bank deposit effectively. To the point, it's like, this is only for people who have USDC on the platform."
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