thought provoking article Garrett. Will this also change the thinking for gold and silver holdings? Could it possibly reduce the demand for investing in or holding gold and silver, whether physical or miner/royalty.
A "stable" dollar with a "hoped for" 2%/yr decline in value, although currently 4.8%. Yes, that's better then -40%, or -95% or -3,000% (Argentina since 1980s).
The Genius Act seems to say "no interest will be given," but they can be "loaned" to make an interest payment as well as leveraged. That can't go south...
Next up, the PACE Act, yes (for the GENIUS, Clarity, and PACE trifecta, anyone?)... I happened on the PACE Act while trying to understand how Brazil's Pix system might compete with re-dollarization. Thanks for the inspiration here!! As always....
The PACE Act house bill requires payment service providers (PSPs) to maintain reserves on at least a 1-to-1 basis. If the reserves consist of U.S. Treasury bills, notes, or bonds, the remaining maturity must be 93 days or less. Again, as in GENIUS, keeping reserve requirements short term.
I wonder if this could eventually lead to some kind of global banking crisis if everyone starts abandoning their local currencies and banking systems for this new US backed stablecoin system?
Of course it could… by definition… rate hikes and or higher rates can accelerate selling quickly - think GILT Crisis, Nikkei Crash, etc. It would be fast… then the Fed/Treasury “does something” - then it calms down.
Howell has an interesting observation that stability requires the MOVE Index at like 80 or less. Makes sense….
The Federal Reserve Bank of Cleveland working paper demonstrates that US Dollar backed stablecoins functioned as a near-substitute for dollars in international markets. Interesting to explore offshore US dollars conversion quantify and rates to USDC USDT stablecoins, if any.
Could central banks have purchased a ton of gold these last few years because it was due a run up after covid money printing. I was surprised it took so long personally. I looked like dumb ass for long time holding my gold stocks while bit-dog ran the block, I have now started to sell my gold stocks will the central banks not due same after this epic run up?
Fair argument. Countries will fall into two buckets: Strong/Stable currencies vs. USD (GBP and EURO come to mind) - don't see USDC being popular as a store of value here. Other countries where currencies do lose vs. USD, can easily ban / limit USDC buying, thereby creating a cap on adoption.
The Depository Trust & Clearing Corporation (DTCC), a cornerstone of global financial infrastructure, recently published patent US20250078065A1 — and its contents reveal a clear strategic direction.
Rather than disrupting existing systems, DTCC intends to digitally strengthen them. The patent outlines a hierarchical structure that preserves centralized control, meeting both regulatory requirements and institutional expectations. While this stands in contrast to blockchain's traditional emphasis on decentralization, it reflects the practical compliance realities that financial institutions face globally.
DTCC's approach is one of reinforcement, not replacement — integrating blockchain efficiency into the existing financial framework while maintaining the centralized stability and accountability that regulators demand. The result is a blueprint for a smoother, more controlled transition into a digitally enabled era of global finance.
So the Big Idea conclusion here is - buy and hold CRCL??
I am going to buy CRCL in my 401k
thought provoking article Garrett. Will this also change the thinking for gold and silver holdings? Could it possibly reduce the demand for investing in or holding gold and silver, whether physical or miner/royalty.
I believe No as liquidity expanding is still bullish for materials… and silver is still an important component on industrial side…
A "stable" dollar with a "hoped for" 2%/yr decline in value, although currently 4.8%. Yes, that's better then -40%, or -95% or -3,000% (Argentina since 1980s).
The Genius Act seems to say "no interest will be given," but they can be "loaned" to make an interest payment as well as leveraged. That can't go south...
Next up, the PACE Act, yes (for the GENIUS, Clarity, and PACE trifecta, anyone?)... I happened on the PACE Act while trying to understand how Brazil's Pix system might compete with re-dollarization. Thanks for the inspiration here!! As always....
The PACE Act house bill requires payment service providers (PSPs) to maintain reserves on at least a 1-to-1 basis. If the reserves consist of U.S. Treasury bills, notes, or bonds, the remaining maturity must be 93 days or less. Again, as in GENIUS, keeping reserve requirements short term.
Very interesting... Thanks
I wonder if this could eventually lead to some kind of global banking crisis if everyone starts abandoning their local currencies and banking systems for this new US backed stablecoin system?
Of course it could… by definition… rate hikes and or higher rates can accelerate selling quickly - think GILT Crisis, Nikkei Crash, etc. It would be fast… then the Fed/Treasury “does something” - then it calms down.
Howell has an interesting observation that stability requires the MOVE Index at like 80 or less. Makes sense….
The Federal Reserve Bank of Cleveland working paper demonstrates that US Dollar backed stablecoins functioned as a near-substitute for dollars in international markets. Interesting to explore offshore US dollars conversion quantify and rates to USDC USDT stablecoins, if any.
Could central banks have purchased a ton of gold these last few years because it was due a run up after covid money printing. I was surprised it took so long personally. I looked like dumb ass for long time holding my gold stocks while bit-dog ran the block, I have now started to sell my gold stocks will the central banks not due same after this epic run up?
Can’t wait to unpack so much with you this Tuesday on our 2-hour livestream. Write a piece about this very thing a few months back as well https://www.wealthmatterstome.com/p/behind-the-tariff-paywall?utm_source=publication-search
I have limited understanding of all this but wouldn't a "stable" "world" gold coin be more widely accepted vs a USD version?
I doubt it
Fair argument. Countries will fall into two buckets: Strong/Stable currencies vs. USD (GBP and EURO come to mind) - don't see USDC being popular as a store of value here. Other countries where currencies do lose vs. USD, can easily ban / limit USDC buying, thereby creating a cap on adoption.
Cenralized control of the decentralized networks.
The Depository Trust & Clearing Corporation (DTCC), a cornerstone of global financial infrastructure, recently published patent US20250078065A1 — and its contents reveal a clear strategic direction.
Rather than disrupting existing systems, DTCC intends to digitally strengthen them. The patent outlines a hierarchical structure that preserves centralized control, meeting both regulatory requirements and institutional expectations. While this stands in contrast to blockchain's traditional emphasis on decentralization, it reflects the practical compliance realities that financial institutions face globally.
DTCC's approach is one of reinforcement, not replacement — integrating blockchain efficiency into the existing financial framework while maintaining the centralized stability and accountability that regulators demand. The result is a blueprint for a smoother, more controlled transition into a digitally enabled era of global finance.
Summarized from Genfinity. https://genfinity.io/2025/04/30/dtcc-on-chain-patent-global-finance-takeover/
Stablecoin adoption data from A16z.
https://a16zcrypto.com/posts/article/stablecoin-data-charts