|
Stablecoins - An Instrument of Statecraft and Intelligence?
The GENIUS Act—an aggressive plan to extend the life of the dollar as reserve currency by marketing stablecoins to the global audience through mobile payment apps, fintech, and large banks—has passed. This has the potential to become the largest expansion of money and credit in our history.
Treasury Secretary Bessent is projecting issuance of $2 trillion in stablecoins within the short term and $3.7 trillion by the end of the decade—and recall that stablecoins are backed 1:1 by “cash-equivalent” Treasury bills and bank reserves and deposits. If you look at how much the “Big Beautiful Bill” increased the deficit at the same time that the Fed is reducing its holdings of Treasury securities, stablecoins appear to be a way for global stablecoin buyers to help carry the fiscal largesse load. If successful, therefore, the stablecoin gambit could transfer the U.S. government’s growing debt position from the Fed’s balance sheet to retail stablecoin users around the world.
“Although the perils of a global fiat system surely are apparent in today’s economic times, the replacing of nearly 200 central banks with a handful of centralized issuers within the regulatory regime of the United States is hardly an upgrade worth fighting for.”
~ Mark Goodwin
The Action:
Though stablecoin-related developments portend serious and rapid changes for all of us, we would remind you that while digital technologies permit individual-level surveillance, each of us can opt for freedom in a myriad of ways—using cash and other analog options such as checks, eschewing QR codes and (in the U.S.) the REAL ID, banking only with high-integrity local institutions, developing household- and community-level resilience, and many other actions. Whether analog or digital, it starts by taking responsibility—both control and freedom are one person at a time.
Related Sources:
- Stablecoins: The GENIUS Act Passes with Darren Moore, Jr.
- Stablecoins: Where the Carrot Meets the Stick with Mark Goodwin
- Digital Money, Digital Control – Episode 1: Decrypting the New Financial System with Mark Goodwin
- Digital Money, Digital Control – Episode 2: Are Stablecoins the Retail CBDC? with Mark Goodwin
Not a subscriber yet? For access to Solari's premium content and subscriber-only opportunities to attend in-person events and submit questions, take advantage of our special Summer offer. Sign up here:
Summer Offer
Catherine Austin Fitts & the Solari Team
|
|
