Banks Will Survive the Stablecoin Future: Ferguson & Rincon-Cruz

Bitcoin and other crypto tokens fluctuate in price — sometimes wildly — behaving more like speculative securities or options than money. But stablecoins are a different matter, as their name suggests. Are they, as their proponents claim, a truly “internet-native” means of payment — in short, the future of money? Or are they, as critics warn, a mortal threat to financial stability? We think the former.

Following the passage of the GENIUS Act last summer, the US for the first time has a clear regulatory framework for the issuance of stablecoins. The result has been a boom: Fiat-backed stablecoins have ...