25th June 2025 Digital Bytes
The ethics of algorithmic stablecoins - algorithmic stablecoins seek to maintain a fiat currency peg (such as the US$) through automated code and smart contracts rather than collateral or custodial backing. But whilst they offer the promise of decentralisation and capital efficiency, they also raise serious ethical and practical concerns. These include the fundamental shift in trust from traditional institutions to algorithmic code - which is still written and maintained by humans and thus vulnerable to errors, exploitation and unintended consequences. Despite claims of transparency, the complexity of these systems often creates a gap between visibility and actual user understanding and this “transparency paradox” undermines informed consent and responsible participation.
Understanding blockchain’s role in trade finance - blockchain offers a transformative solution to trade finance’s long-standing issues of inefficiency, fraud and opacity. By digitising documents, enabling real-time verification and automating transactions through smart contracts, it can significantly reduce the $1.6 trillion lost to fraud annually. However, widespread adoption remains slow due to legacy systems, legal ambiguity and resistance to change - the technology is ready but the challenge lies in aligning the global trade ecosystem to embrace it.
Banks without borders: can DeFi operate with regulatory oversight? - decentralised finance (DeFi) is redefining global finance by offering permissionless, borderless access to financial services whereby challenging traditional banking and state control over money. As regulators grapple with how to oversee systems built on code rather than corporations, innovative models are emerging such as Bitcoin-backed banks and smart contract compliance tools. Some jurisdictions are embracing DeFi through regulatory sandboxes and partnerships with blockchain analytics firms and so, rather than elimination, the path forward points to integration where DeFi’s core principles co-exist with practical regulatory frameworks to build a new era of global finance.
The ‘Big Bang’ of US stablecoins - the rise of US dollar-backed stablecoins is quietly reshaping global finance. Offering instant, borderless and bank-less transactions, stablecoins such as USDC and USDT are increasingly replacing local currencies in unstable economies - and even challenging central bank authority in developed ones. As they become embedded in global trade, remittances and digital wallets, stablecoins threaten to erode monetary sovereignty, diminish fiscal control and render national currencies less relevant. This ‘Big Bang’ in finance marks the beginning of a new monetary era one where programmable US$, not central banks, govern how value moves.