Stablecoins are being sold as safe, secure cryptocurrencies. In reality, they are shadow banking in disguise – with the same risks that nearly destroyed the global economy in 2008. Nobel Prize–winning economist Jean Tirole is worried, and so am I. If these private tokens collapse, the public will pick up the bill. It’s time to call stablecoins what they are: a threat to financial stability and democracy.
00:00 – The threat of stablecoins
01:05 – What are stablecoins?
02:15 – Why Nobel economist Jean Tirole is worried
03:20 – The shadow banking parallel
04:40 – Overvalued markets and stablecoin risks
06:00 – Politics, Trump, and weak regulation
07:25 – Systemic risk: $280 billion at stake
08:30 – Stablecoins as private money creation
09:30 – Threats to democracy and sovereignty
10:20 – Why governments must act now
Credit to : Richard J Murphy