The Daily Peg: Imitation is flattery
A round-up of all the essential stablecoin news.
Industry news
— Why stablecoins are shifting from crypto fringe to corporate strategy (Financial Times)
Key graf: None really.
— More about neo-stablecoin bank Erebor (via Zerohedge)
Key graf: “The application describes Erebor as “a national bank… providing traditional banking products, as well as virtual currency-related products and services, for businesses and individuals,” with a focus on customers underserved by both traditional and fintech institutions. It will also offer services to non-U.S. companies seeking access to the American banking system.”
Market news
— Economist Huang Yiping floats Hong Kong as stablecoin staging ground (SCMP)
Key graf: “Huang said the country should not stay on the sidelines of such innovation, given that markets for stablecoins and other digital assets are gaining steam. “If we can proactively leverage Hong Kong to carry out some pilot programmes, I think it would be very worthwhile,” he said.”
— Amundi warns US stablecoin policy could destabilise global payments system (Reuters)
Key graf: "In doing so you create an alternative to the U.S. dollar and that could lead to more weakening of the dollar," Mortier said. "Because if a country is pushing a stablecoin, it could be perceived as pushing the message that the dollar is not that strong."
Regulatory news
— China's tech giants lobby for offshore yuan stablecoin, sources say (Reuters)
Key graf: China's tech giants JD.com and Alibaba affiliate Ant Group are urging the central bank to authorise yuan-based stablecoins to counter the growing sway of U.S. dollar-linked cryptocurrencies, people with direct knowledge of the discussions said.
— ECB’s Lagarde says stablecoins will lead to the privatization of money (Fortune)
‘“I think that we are falling prey to some confusion between money, means of payment, and payment infrastructure, and that is accelerated or emphasized as a result of the technology that is being used, and some technologies in particular,” Lagarde said during a panel with four other central bankers.’
Imitation is flattery, right?
— Why Euro Stable Watch? Mapping Europe's new financial rails (Euro Stable Watch)
Euro Stable Watch is a new Substack from Nicolas Colin (former French Treasury official and macro & markets writer) and Marieke Flament (former senior executive in both banking and crypto seemingly started on June 2.
Unlike Cash Equivalence, it lacks journalistic pedigree, is more narrowly focused and and appears euro agenda-centered.
— From the same authors: The New Money Stack: Europe's Digital Currency Choice (Euro Stable Watch)