Are Stablecoins Safe? Should You Own Them?

How stablecoins are similar and different from other monetary assets. What are stablecoin risks. Why central bank digital currencies are one of the biggest threats to stablecoins.Topics covered include:Why the Federal Reserve and other central banks are exploring issuing their own digital currenciesWhat is the difference between public and private moneyHow deposit insurance and central bank actions prevent runs on private moneyHow money market mutual funds are a type of stablecoinHow true stablecoins and algorithmic stablecoins differWhat is driving the demand for stablecoinsWhat are the risks of stablecoinsThanks to LinkedIn and Policygenius for sponsoring the episode.For more information on this episode click here.Show NotesMoney and Payments: The U.S. Dollar in the Age of Digital Transformation January 2022—Board of Governors of the Federal Reserve SystemTaming Wildcat Stablecoins by Gary B. Gorton and Jeffery ZhangMoney Stock Measures - H.6 Release—Board of Governors of the Federal Reserve SystemTop Stablecoin Tokens by Market Capitalization—CoinMarketCapTransparency—TetherReport on Stable Coins, November 2021—Various US AgenciesBuilt to Fail: The Inherent Fragility of Algorithmic StablecoinsDr. Ryan ClementsThe Quest for a Truly Decentralized Stablecoin by Brady Dale—Coin DeskCryptocurrency Doesn’t Amount to Much by Steve H. Hanke and Matt Sekerke—The Wall Street JournalRelated Episodes319: Here Come Central Bank Digital Currencies339: How To Make Money with BlockFi, Dai, and the Evolving DeFi Ecosystem333: How The Covid Shock Nearly Destroyed The Financial SystemSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.