Tag: Fiat

productivity, Profitability, regulation

StableCoin needs clear definition similar to Bretton Woods

Colin Henderson

The debate between USDC exemplified by Circle and USDT associated with Tether brings many of the realities of crypto into focus. The perennial debate has been whether Bitcoin is an asset class lke Gold or Silver or is it a useful alternative currency to fiat. Bankwatch Research Research and background on USDC and USDT. The recent Compass Point report made two points, and thus fails as an analytical support document: 1. Market Penetration – USDT has that 2. Additional cost structure for USDC (Circle ) associated with regulatry requirements similar to banking, will hinder profitability If we explore the second … Continue reading StableCoin needs clear definition similar to Bretton Woods

Business Models, Innovation1 Comment

Where are the bank visionaries when we need them?

Colin Henderson

As we watch for bank stress test results in the US and other countries efforts to deal with Banks’ asset valuation and capital levels, its useful to keep a track on the economic back drop, and assess the bank’s efforts to address their real problem, which is over-valued assets. The US stress tests specifically address the impact on banks under certain sets of future assumptions for economic growth and stability. Spring forecasts 2009-2010 | European commission The Commission forecasts a sharp contraction of the EU economy by 4% in 2009 (relative to a positive growth of 0.8% in 2008). Almost … Continue reading Where are the bank visionaries when we need them?