“Why the World Should Worry About Stablecoins”:
“For the rest of the world, including Europe, wide adoption of US dollar stablecoins for payment purposes would be equivalent to the privatization of seigniorage by global actors.” This then would be yet another predatory move by the superpower.
Yet the [Bank for International Settlements] is also concerned that stablecoins will fail to meet “the three key tests of singleness, elasticity and integrity”. What does this mean? Singleness describes the need for all forms of a given money to be exchangeable with one another at par, at all times. This is the foundation of trust in money. Elasticity means the ability to deliver payments of all sizes without gridlock. Integrity means the ability to curb financial crime and other illicit activities. A central role in all this is played by central banks and other regulators.