Good morning,
One of the most important issues in banking right now concerns stablecoins and the related Genius Act.
The Treasury Secretary predicted recently that $3.7 trillion worth of U.S. Treasuries could be absorbed by stablecoin demand.
This seems auspicious. Given perpetual government deficits, we need all the additional demand for government debt that’s possible.
But there’s an unintended consequence to a shift even half this large.
It has to do with the deposit multiplier.
We discuss below and in today’s video the significance of this concept to the stablecoin issue.
Listen to this episode with a 7-day free trial
Subscribe to Maxfield on Banks to listen to this post and get 7 days of free access to the full post archives.
