With Stablecoins being the precursor to the eventual CBDC, one question to ask is how the finance ghouls plan to eventually transition to having only the Fed member banks issuing stablecoins? The way it's being rolled out, almost any entity from Walmart to General Motors can issue their own stablecoins, all backed by US dollars / Treasuries. But these companies with need to get some type of banking charter (article link below), and will have FDIC insurance (yikes), etc.
So what could go wrong? A lot. This looks like a disaster in the making, and the response to the eventual crisis will then be to narrow the issuance of stablecoins down to only bona fide banks within the Federal Reserve System (ie a CBDC). Anyway, that looks like the plan, but the risk of this approach would be a meltdown among these new 'non-bank banks', which then drags down the entire banking system.
But other goals of this stablecoin approach involve the massive amount of credit issued globally by all these US companies and their stablecoins. Catherine Fitts compared the massive new global credit boom made possible to the infamous 'pallets of cash shipped into Iraq'. The idea is to get countries using our stablecoins (which are 100% backed by the dollar and US Treasuries), and this will produce huge sustained demand for Treasuries, and keep countries on the US dollar system and maintain its viability.
Anyway, lots of pitfalls (and benefits?) to this stablecoin scheme, but it sure seems risky having hundreds of non-bank issuers of stablecoins, all with FDIC insurance ---> Danger Will Robinson...
>>> Everyone wants to be a bank now. Banks aren’t happy about it.<<<
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