EIR has demonstrated in the past that if central banks issue central bank digital currency (CBDC) directly to individuals, households and businesses, the central banks will become “deposit monopolists” and cause commercial banks to close down or become investment banks. There would then be far less credit available to economic actors of all kinds.
The fact that privately issued “stablecoins” will do the same thing was emphasized in an April 4 article in Time, quoting both an American University law expert and a long-time Democrat in Congress.
Hilary Allen of the American University Washington College of Law warned that under the House “STABLE Act” and Senate “GENIUS Act” promoting stablecoin tokens, those not-so-stable coins will not be limited to issue by banks, but will be authorized to come from the tech giants like Amazon, X, Meta, Google, etc., as was intended by Facebook already five years ago, but stopped. Now, all these tech mega-companies want to get into handling payments and offering deposit accounts.
