The case against stablecoins

plus: tariff progress, market mood, vibe shift

“Habit is stronger than reason.” – George Santayana ||

Hi everyone, and happy CPI day! How can it be Wednesday already…

IN THIS NEWSLETTER:

• The case against stablecoins

• Macro-Crypto Bits: vibe shift, market mood, tariff progress

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WHAT I’M WATCHING:

The case against stablecoins

To set the stage, I am pro-stablecoins. Enthusiastically so. It’s one of the few areas of crypto in which I think the hype is almost deserved. But that doesn’t mean there aren’t risks, and one of them is not addressing potential issues, be they systemic, technological or even ideological.

One thing I’ve noticed recently is the sceptics are getting more vocal and more numerous. In part, it’s because stablecoins are now headline news, with businesses, banks and officials around the world voicing excitement. What’s more, the expectations are accompanied by hefty price tags: Stripe’s $1.1 billion purchase of stablecoin platform Bridge and Circle’s blowout IPO and current $25 billion market cap are just two recent examples. Money talks, and sometimes yells.

Put differently, more people are paying attention, which widens the pool of perennial doomsters. Also, fear sells, and the “beware!” storyline is great for clicks and engagement. I’ve written before on the Financial Times’ astonishing insistence on spreading misinformation on the topic. Reuters, Bloomberg and many others have also focused on the negative, even outside the often frothy opinion columns.