Both Substack pieces are great; I haven’t read the paper yet.

Stablecoins seem like the best way to maintain the “Treasury Standard.” In time banks will have to join that party, especially if the market gets comfortable with something less than fully reserved stablecoins.

Banks would also argue that only they (as regulated entities) should be permitted to issue fractional stablecoins and if they succeed, there won’t be enough margin in fully reserved stablecoins for non-banks to compete.