Myths about money are powerful and entertaining. They are a terrible basis for policy or law. In the latest Open Banker, Alex Steinberg Barrage and I bust three common myths about stablecoins. 🧵

2/6 The time is now to get bipartisan payment stablecoin legislation right. The full article linked here; mythological highlights in the thread. openbanker.beehiiv.com/p/sta…

3/6 Myth 1: Stablecoins are like deposits, and their issuance is inherently riskier than bank deposit taking. This myth is based on the idea that stablecoins are volatile deposit-like instruments. They are neither, when properly regulated.

4/6 Myth 2. Stablecoins will displace bank deposits and thus the money creation function of banks. This myth boils down to a fear that stablecoins will eat the world of money. This idea is unsupported by the economics of stablecoin issuance and for stablecoin holders.

5/6 Myth 3. Stablecoin issuer resolution requires the appointment of a dedicated receiver like the FDIC; the bankruptcy process is unworkable. Stablecoin resolution is different from bank resolution, with different priorities and mechanics. Bankruptcy may, in fact, be better.