STABLECOIN SCENARIO

Stablecoins are backed by non-monetary assets, primarily government bonds. Importantly, you can transact with stablecoins without a bank account, but critically, stablecoin platforms lack access to the central bank. As a result, their stability will depend on redemption rules, which can become destabilizing in and of themselves, and on the liquidity of the Treasury market. These features make stablecoins, like money market funds, inherently and meaningfully riskier than currency.