Actually, I hold a completely different view 😂

1. Stablecoins do not create "extra currency"

Because the US dollars used to purchase stablecoins and government bonds are already circulating currency issued by the Federal Reserve. This portion of dollars can inherently achieve expansion through the normal banking system's "money multiplier".

Even now, expanding the economy through stablecoins does not exceed this scope, and the multiplier is even smaller.

2. Stablecoins cannot be equated with shadow dollars

The total amount, distribution, flow, and destination of stablecoins are all clearly visible on-chain, and their impact on the overall dollar volume is too transparent, much more so than banks. It should be referred to as transparent dollars rather than shadow dollars.

Equating stablecoin issuers with a shadow Federal Reserve is even less appropriate, as they cannot truly print money out of thin air on a large scale like the Federal Reserve. Each stablecoin must be backed by real dollars, and after the stablecoin legislation, it is unlikely that any stablecoin issuer would dare to issue stablecoins without collateral. Even if there were, they could not do so on a large scale.

3. Stablecoins are more of a distribution channel for dollars

Stablecoins primarily expand the range of dollar holders and increase demand for US debt. Previously unreachable corners are now accessible through the distribution channel of stablecoins. Thus, in my view, stablecoins resemble capillaries, and issuers are important members of the dollar distribution system.

4. Stablecoins cannot eliminate debt

Because interest still needs to be paid! The presence of stablecoins as a demand side may be a favorable factor for bond issuance costs, but against the backdrop and trend of various countries with trade surpluses selling US debt and decoupling, the current scale of stablecoins has too small an impact on US debt costs.

Supporting a flourishing stablecoin ecosystem does not eliminate debt; on the contrary, the US launching its own stablecoin could do so because currently, stablecoins do not need to pay interest to holders, allowing US debt interest to be paid from the left pocket (Treasury) to the right pocket (its own stablecoin issuers) without flowing out to stablecoin users.

This is true cost-free debt elimination, the real way to eliminate debt.