The Bank for International Settlements (BIS) said that stablecoins "perform poorly" as money. This is apparently because they are not backed by central banks, lack sufficient safeguards against illicit usage, and don't have the necessary funding flexibility to generate loans. Let's revisit this. - Stablecoins (e.g. Tether) are backed with U.S. Treasuries. This extends to the FED, i.e. the central bank. - Stablecoins require KYC if you exchange fiat for them on a regulated exchange. Not too different from getting fiat cash from an ATM. You need a bank account for this. Needless to say, both cash and stablecoins can be used illicitly to the same extent. - The flexibility needed to generate loans is essentially creating money out of thin air aka commercial bank lending. This is a given with any fiat instrument. So long there is no full proof-of-reserve, one has to trust the issuer. In summary, stablecoins are just like fiat currency because they are exactly that, continuously debased tokenized fiat currency. They perform well as money for the time being. Ask anyone who is actually using them. So what is the BIS on about? Well, what the BIS is not saying is that stablecoins should be issued by central banks (read CBDC), not private entities possibly out of regulatory reach.

GM and a blessed Sunday everyone

I was on a call with a dude today, and his German accent was so heavy that his "version" sounded like "virgin." So confusing. “Hey Philipp, we plan to do this to Virgin 7 with the upcoming release”

“Pls fix” Every consultant loves this request.

GM. Bitcoin is the ultimate collateral. "[JPM] chief Jamie Dimon, who once branded bitcoin a ‘fraud’, has moderated his tone"

Bundesbank chief warns of possible risks to the banking system from Stablecoins and urges tighter regulations in the EU after the passage of the Genius Act in the US. Dude, I’m not sure if you follow markets but the system is in a nosedive. Tighter regulation won’t save it. And a Stablecoin is simply a fiat coin, no different from a credit card. So why fuss about it? I sense their fear of yet another non-European payment provider (Tether) taking over the market. They surely gonna have to outlaw Tether and prop up a mandated Euro Stablecoin provider. So long until they push that evil digital Euro. Nothing of signal here, Stables are a transitionary technology at best. People are moving away from continuously debased fiat coins.

The ECB is moving forward with their digital euro. They state that regulations, provider selection and tests are on schedule. Their goal is to set the highest standards for quality, security and user friendliness. Of course. Apparently a provider for their platform and infrastructure will be selected by end of the year.

Fractional ownership, i.e. the tokenization of assets, is nonsense. Why would anyone want to own 1/250 of a painting, fine wine, or commercial real estate project? The only fractional assets one should own are Sats.

Currency is the medium of exchange, and Money is the store of value.

1.6 billion AUM asset manager Franklin Templeton believes that Bitcoin won’t become a global currency. Hate to break it to them, but Bitcoin is money. And it’s global.

GM. Went to the lake, took a swim. Touched grass, took in sun. Life is wonderful.

Best day to stack was yesterday. 2nd best day to stack is today. 3rd best day to stack is tomorrow. Onwards.