Why a Digital Euro really matters (beyond “stablecoin summer”)
The ECB, however, needs to sharpen its communications on the purpose of a digital euro. The underlying logic the FT reports is off: people choose dollar stablecoins because they are dollars. Even if euro demand were strong, the proposed digital euro is account-based—unlike bearer-style stablecoins—and will require onboarding.
Why stablecoins are Silicon Valley's Pandora's box
Despite piggybacking on the dollar and often sharing the same blockchain, out of the box their smart contracts remain stubbornly non-interoperable and therefore non-fungible.
Each coin is a brand—and combined with the network effects inherent in money itself, winner-takes-all dynamics emerge. Already, two giants rule: Tether commands a $159 billion market capitalisation - 61% of the market - while Circle's USD Coin holds $62 billion or 24%.