For once, I’ve thought about all these private groups issuing “stablecoins” pegged to fiat currencies like the USD or KRW. I even did a quick back-of-the-envelope calculation: say I issue a 1Korea Coin and accept it for rent at my own studio building. I give tenants a 2% discount for paying in the coin. With interest rates at 2.5%, I’d barely break even—assuming I could hold their money for a year (which I can’t). In short: no profit, lots of headaches.
Unless you’re managing $100 billion in reserves and earning yield like a bank, issuing a stablecoin just doesn’t make financial sense. The margins are thin, the regulatory costs are huge, and you’re effectively running a global bank with none of the protections.
What’s worse, these coins weaken central banks’ control of the economy. If stablecoins go mainstream, interest rate policies won’t work. That’s why CBDCs are coming—and once they’re here, stablecoins will be irrelevant.
At the end of the day, governments aren’t kings. They’re institutions built by all of us. Stablecoins, in contrast, are rebellion projects. But unless you become the king—literally run the global monetary system—your coin won’t survive.