How Do We Define a Currency?

Bullish:

• $GOLD - Gold is viewed as a stable store of value, particularly during uncertain times, due to its independence from debt and historical usefulness in difficult periods.

  • “If you have this sort of idea that this is more stable than other things, then at the same time, gold is nobody else's debt. And then you hope that it is more useful than other things when times are are difficult.”

    Stefan·58:25
• $CBDC - Central Bank Digital Currencies (CBDCs) are being considered as a way for the public to hold central bank money, though their implementation depends on political decisions and technological capabilities.

  • “Either the political conclusion is that for whatever reason, you want the general public to be able to hold central bank money given the technology on that day, or you say that it is enough to sort of, just deal with the back end, And then the back end of the system sort of backs up, stablecoins.”

    Stefan·54:02

Bearish:

• $OFFSHORE - Concerns are raised about the stability and transparency of offshore banking practices used by some stablecoin issuers, highlighting potential risks in this area compared to traditional money market funds.

  • “But I do think that there is a major difference when you run a Money Market Fund which basically holds, let's say, treasuries and deposits with the Central Bank compared to something you call a Stablecoin. And when you scratch on the surface, you realize that all of it is deposited in a bank located in an offshore financial center.”

    Stefan·56:41
• $STABLES - Stablecoins may face challenges from the potential introduction of retail central bank digital currencies, as indicated by opposition from the stablecoin industry to such developments.

  • “Well, I mean, I think if you hear people from the stablecoin space talk about, say, retail, central bank digital currencies, not so much policy, but but retail, they would be very much opposed to to to this. And to me, this is an indication that they see it as a challenge.”

    Inaki·53:16