Stabledollars: The Third Act of Dollar Reinvention

Stabledollars: The Third Act of Dollar Reinvention


Eight decades of dollar history can be read as a three-act play.

Act I was the Eurodollar—off-shore bank deposits that sprang up in 1950s London so the Soviet bloc, European exporters, and eventually every multinational could hold dollars outside U.S. regulation, spawning a multi-trillion-dollar shadow banking base.

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Act II was the Petrodollar. After 1974, OPEC’s decision to price crude in dollars hard-wired global energy demand to U.S. currency and gave Washington an automatic bid for its Treasury bills.

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Act III is unfolding now. USD-backed Stabledollars (a.k.a. stablecoins)—on-chain tokens fully collateralized by T-bills and cash—have leapt past

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