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Cake day: July 18th, 2023

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  • So I’ve been reading into stable coins a lot, because I don’t understand why anyone would care about them. And what I’ve come to realize is they are a benefit to two groups:

    • Financial institutions: Stablecoins have fewer regulations and basically allow for things you can’t do with actual dollars/currency
    • People with limited access to financial institutions (think poorer people and/or countries): With fewer regulations it’s easier for people to transact Stablecoins than dollars/currency

    At the end of the day, it feels like a “true” digital currency would be the better solution, but everyones jumping on Stablecoins because they’re here now and less regulated.

    I think there is potential in a more cash-like digital currency, but Stablecoins seem ripe to break in some unforseen way, especially given the current administration.

    Edit: Edited to fix formatting.