Stablecoins - what the hell are they?
Ideas to take with you.
- 01
Stablecoins inherit Bitcoin's open digital rails while keeping a centralized issuer, which extends the dollar's reach without changing the dollar's underlying mechanics.
- 02
Because stablecoins are backed by US Treasuries, every stablecoin in circulation generates new demand for US government debt — perpetuating the lending mechanism the dollar requires to keep expanding.
- 03
Iran marks the operational line: a stablecoin issuer froze Iranian assets at US government request, while Bitcoin transactions used for Strait of Hormuz toll payments could not be censored.
- 04
The relevant distinction across stablecoins, CBDCs, ECNY, the digital euro, and a digital Canadian dollar is not the issuer or jurisdiction — it is whether the system is permissioned or permissionless.
- 05
Stablecoins function as a bridge period: they let humanity adjust to transacting digitally without leaving the fiat regime, and that same adjustment quietly extends the regime's lifespan.
