Regulators are leery of traditional banks offering services to crypto companies, and wary of specialist crypto banks, like Custodia, with new business models. Frances Coppola asks: Where do we go from here?
What Now for Crypto Banking?
After FTX: Explaining the Difference Between Liquidity and Insolvency
Did FTX fall because of a “liquidity crisis” or a “run on the bank,” or was it insolvency? The language matters, says Frances Coppola.
Crypto Can Help With Elon Musk’s Twitter Identity Issue
The Blue Bird faces a “Byzantine Generals” problem that Bitcoin solved.
Crypto’s 1907 Moment
Financial stability ultimately depends on the trustworthiness of people, not the reliability of technology.
Banks Aren’t Going to ‘HODL’ Bitcoin
Bank for International Settlements proposals are unlikely to lead banks to hold bitcoin. But they could open the door to CBDCs, says our columnist.
Why This Crypto Crash Is Different
There can be no return to the highly-leveraged, fractionally-reserved cryptocurrency system whose illusory riches are now giving way to real losses, says our columnist.
No, the UK Is Not Going to Make USDC and USDT Legal Tender
Recent news that the government would legalize stablecoins is a qualified welcome for a GBP-pegged token from a trusted UK issuer.
Why Stablecoin Interest Rates Are So Damn High
Or why Jeremy Allaire can’t stop printing.
Think Stablecoins Are Solid? Remember the Financial Crisis
USD stablecoins are created largely outside the dollar system and lack federal deposit guarantees. Investors should be careful.
Scarcity Gives Bitcoin Value, but Not the Way You Think
Bitcoin is “scarce” (and therefore valuable) when demand for it exceeds the available supply, not because of its 21 million hard cap, says our columnist.
Crypto’s Choice: Join the Financial System or Fight It
The crypto industry faces a momentous choice. Does it integrate with the existing financial system’s rules? Or does it choose to fight for its anti-status quo principles?
Why Bitcoin Thrives (and Why It Won’t Replace the Dollar)
A world in which bitcoin becomes the global reserve currency is a world many of us would not want to live in.
Ethereum, Dark Forests and the Limits of Transparency
The crypto world eschewed trust in favor of transparency. But transparency doesn’t solve the problem of untrustworthiness in financial markets.
Banks Are Toast but Crypto Has Lost Its Soul
In becoming a high-risk, high-yield playground for dollar investors, the cryptocurrency world sold its soul, says our columnist.
Mr. Powell, If You Want Higher Inflation, Give People Money
The Federal Reserve wants a little more inflation to keep the economy buoyant. That’s hard to achieve when Main Street is so under water.
Why Bitcoin-Like Scarcity Would Be a Disaster for the Dollar
Calls to restrict the Fed’s money printing powers fail to recognize the likely consequences, including price instability.
‘Money Printer Go Brrr’ Is How the Dollar Retains Reserve Status
Forecasts of the dollar’s demise are premature. Demand for greenbacks has never been stronger, says our columnist.
How a Fatal Weakness Forced Libra To Capitulate
While Bitcoin created an alternative financial system independent of government, Libra’s architecture depends on the existing fiat currency system – and on the whims of the governments that control it.
Bitcoin’s Halving Is Nothing Like Quantitative Tightening
The halving could both increase the rate at which bitcoin’s price rises and bring forward the point at which it crashes, says our columnist.
The Stablecoin Surge Is Built on Smoke and Mirrors
Are stablecoins fully backed by reserves? Are they FDIC-insured? Stablecoins may be too good to be true, says our columnist.
