"This isn’t innovation; it’s a hostile takeover of the money supply. Lacking anything resembling serious regulation, stablecoins are neither stable nor merely an alternative dollar payment option. They are a Trojan horse for the privatization of money.
The European Central Bank sees the danger. If securities migrate to the blockchain, with bonds, stocks, and derivatives becoming tokenized, then settlement must follow. The ECB’s solution is a tokenized euro, ensuring public money remains the bedrock of finance. So far, the ECB has faced resistance to this plan from German and French private banks. Now, the ECB has another, bigger headache: the United States is racing in the opposite direction. By banning CBDCs and green-lighting stablecoins, Trump’s team are not just rejecting public digital money; they are outsourcing dollar supremacy to the darkest forces within Big Tech.
The irony is grotesque. The same libertarians who rail against government are now begging the state to anoint their stablecoins as de facto official currency. Worse, they demand access to the Federal Reserve’s balance sheet, allowing private issuers to back their tokens with central bank reserves. Imagine a world where Tether, Circle, or some non-scam “X Token” backed by Elon Musk enjoys the implicit backing of the US Treasury while operating outside banking regulations. This isn’t just regulatory arbitrage; it’s monetary feudalism."
https://www.project-syndicate.org/commentary/trump-wants-private-stablecoins-to-replace-dollar-by-yanis-varoufakis-2025-05
#USA #Trump #Crypto #Cryptocurrencies #Stablecoins #Dollar #MonetaryPolicy #PoliticalEconomy #Money