This is an excellent excerpt from my recent LNMS discussion with @crossbordercap "Eurodollars are not a good equivalent for stablecoins as the latter are not net credit providers. They expand liquidity (increase the supply of short-duration assets)." Why is this relevant, you might ask? Well... "Banks create credit. If banks are losing deposits to stablecoin issuers, banks might loose capacity to extend credit." What will be the consequences of this? Well... "Slower/less bank credit growth could mean the government will have take up the baton and increasingly act as credit creator, hence we increasingly move into a fiscal dominance world." This is a fascinating train of thought. I guess though, people like @BenKizemchuk would challenge that notion, given they follow Basil Moore's model of endogenous money???? For the full conversation, see the YouTube link below. Also, we expanded on the historical equivalent being the founding of the Bank of England in our recent Bitcoin book 'The Bitcoin Enlightenment". Link is below as well.