Re: Abridged summary of modern-monetary-theory@googlegroups.com - 1 update in 1 topic

6 views
Skip to first unread message

Bijou Smith

unread,
Jul 21, 2025, 1:04:40 AMJul 21
to modern-mone...@googlegroups.com
I'll give you my lunchtime 2 cents worth. Crypto is just another savings vehicle... with massive (stupid) volatility and highly dubious redistribution properties, like Las Vegas. It cannot possibly collapse the USD (or any other state currency) since it is a (stupid) vehicle priced in that currency.
Too simplistic? 

On Mon, Jul 21, 2025 at 11:25 AM <modern-mone...@googlegroups.com> wrote:
You received this digest because you're subscribed to updates for this group. You can change your settings on the group membership page.
To unsubscribe from this group and stop receiving emails from it send an email to modern-monetary-t...@googlegroups.com.

carlan

unread,
Jul 21, 2025, 1:45:30 AMJul 21
to Bijou Smith, Modern Monetary Theory
Thanks for the response  Bijou. I suspect you are right. However, it is the Genius Act which sounds just like Trump scent all over it. It appears to regulate stablecoins by pegging them 1:1 to the dollar, thus stabilizing them and no doubt eventually stuffingTrump's pockets. Could it be that in time the next step would be for stablecoins to be used to pay taxes and would it matter?

--
You received this message because you are subscribed to the Google Groups "Modern Monetary Theory" group.
To unsubscribe from this group and stop receiving emails from it, send an email to modern-monetary-t...@googlegroups.com.
To view this discussion visit https://groups.google.com/d/msgid/modern-monetary-theory/CABuE7%2BPT6gH19yYA6ApqXGHnyBDC%2BMVuUNgHvugpH1oMDoiC4Q%40mail.gmail.com.

Bijou Smith

unread,
Jul 21, 2025, 2:38:28 AMJul 21
to carlan, Modern Monetary Theory
That's perhaps the better question Carlan! (And thanks for reading the Bill detail, which being a Kiwi I'm not so inclined to bother doing.) 
A 1:1 peg would then make the stablecoin a non-profit.  But "dollars to doughnuts" (pun intended) someone is out to make profit from every crypto transaction, so where's the slack gonna be? Who is going to spend more than their income (in $US)?  The user transaction fee — which goes to the stablecoin vender?  So nothing but a regular bank by other means? It all then just seems so pointless, and a waste of Congress working hours.  So maybe it amounts to just a change in who gets defined to be a "banker" charging customer fees for clearing payments or holding $ denominated savings?  But that's all. Unless it goes ponzi and stablecoin operators emit stablecoin by fiat (without a buyer in US$), and then are in the tank for US$ redemptions later on, which they might not be able to redeem at some point, then perhaps LLC laws will effect the overall redistribution to the venders who get off the hook, so yet another basic income scheme for people who already have a lot of money.  Other than that, is stablecoin going to be tax exempt?  So it's also potentially a fancy tax evasion scheme?   This is one story of how it might go. 

If Congress props up the stablecoin vender, that's just the FDIC by another name, no?

Ed Lane

unread,
Jul 21, 2025, 6:00:47 AMJul 21
to Bijou Smith, carlan, Modern Monetary Theory
Don’t forget the added demand for short term Treasuries to help hold down rates.


Warren Mosler

unread,
Jul 21, 2025, 6:34:17 AMJul 21
to Bijou Smith, Modern Monetary Theory

Ah something about real resource consumption?
Stable coins are a faster payments system. 


--

Warren Mosler

unread,
Jul 21, 2025, 6:38:55 AMJul 21
to Ed Lane, Bijou Smith, carlan, Modern Monetary Theory
Not the case
To view this discussion visit https://groups.google.com/d/msgid/modern-monetary-theory/CADi3QDvni0OaE83L6yePhVmCgtL0RvmkNthqx8qNJ59rcpU0PA%40mail.gmail.com.

Ed Lane

unread,
Jul 21, 2025, 7:28:18 AMJul 21
to Warren Mosler, Bijou Smith, carlan, Modern Monetary Theory

Warren Mosler

unread,
Jul 21, 2025, 7:37:50 AMJul 21
to Ed Lane, Bijou Smith, carlan, Modern Monetary Theory
Happens when you have the rate thing backwards

Ed Lane

unread,
Jul 21, 2025, 7:43:36 AMJul 21
to Warren Mosler, Bijou Smith, carlan, Modern Monetary Theory
I'm not the one you need to tell.
From: Warren Mosler <warren...@gmail.com>
Sent: Monday, July 21, 2025 7:37 AM

Ryan Benincasa

unread,
Jul 21, 2025, 7:45:22 AMJul 21
to Warren Mosler, Bijou Smith, Modern Monetary Theory
I looked into this years ago to determine whether stable coins were set to disrupt cross-border remittance operators (e.g. Western Union, Moneygram). Turns out the latter were by far the lower-cost provider. It’s possible things have changed, but cross-border remittances through those networks basically settle in about ten minutes, exist in almost every country in the world, with some of the toughest compliance controls and at a fraction of the cost.

Agree waste of Congress’ time and resources. 


Warren Mosler

unread,
Jul 21, 2025, 9:20:33 AMJul 21
to Ed Lane, Bijou Smith, carlan, Modern Monetary Theory

👍

Warren Mosler reacted via Gmail

--

Brian Winters

unread,
Jul 21, 2025, 12:05:21 PMJul 21
to Modern Monetary Theory
Ryan, that sounds like interesting research; can you suggest any articles to counter the other narrative? 

This article, China's dollar killer, suggests that banks will use them for "creating new revenue streams. They can charge for transaction processing, custody, or integration services, which they could not do with a government CBDC. Banks can also use private stablecoins to streamline internal processes, such as interbank settlements or cross-border transfers, reducing costs and settlement times. JPMorgan’s institutional clients currently use JPMCoin for instant payments between themselves."

Brian

To view this discussion visit https://groups.google.com/d/msgid/modern-monetary-theory/CAJGanaXuiYORHiiMmc1vYiqdr%3D61%3DmEXAx2_GpsRr3va%3D4RH4Q%40mail.gmail.com.

Ryan Benincasa

unread,
Jul 21, 2025, 1:02:11 PMJul 21
to Brian Winters, Modern Monetary Theory
Hi Brian,

There was a Senate hearing in December 2021 that explored the utility of stable coins and more. One witness' testimony explicitly laid out a comparison of fees for Western Union vs. various stable coin issuers. Here is a link to their testimony, with a snippet below:

image.png

To view this discussion visit https://groups.google.com/d/msgid/modern-monetary-theory/CAEwpmNF-6X9Z7zQG0aO3qzac_3iNk51G4mazOY6c-qN-QQFjPA%40mail.gmail.com.


--
Reply all
Reply to author
Forward
0 new messages