1 Comment
⭠ Return to thread

Hi Jonny, I am big fan of the idea of programmable money but there some structural issues. Tokenized deposits are not ‘transferable’ outside the bank with whom you have your bank relationship because you own a claim not the money itself and you cannot transfer that claim. Stable coin have a business problem which is the redistribution of the interest component. If you are client of bank A and hold your funds in stable coins from bank B this would potentially make you an unprofitable client. Hence such a model will be ‘unstable’ because the bank does not have infinite capacity to service such clients. I am sure a solution could be found but so far I have seen nothing credible, but I could have missed something.

Expand full comment