In a report published on April 10 by the Federal Reserve Bank of Kansas City, a careful study of the uses of crypto “stablecoins,” by researcher Franklin Noll, finds that less than 1% of stablecoin trading is used to pay for anything in what would be called an economic transaction—and that includes buying U.S. Treasury securities. This 0.7% share of “means of payment” functions for stablecoins—despite Congressional legislation, loose regulation, and hyping up of supposed cross-border speed and ease of payment for foreigners—indicates that Trump Administration claims of a great stablecoin “buy America” boom are false.
The vast majority of usage of stablecoins is still: trading, or use of crypto coins to buy other crypto coins; infrastructure, or use of stablecoins to maintain crypto exchanges and other blockchains; and finance, or use of stablecoins on Wall Street and in other financial speculations and securities operations.
