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Disco Central Banker @centralbanker.bsky.social · 5h

Mandela effect done right

Reposted by Disco Central Banker

Nikki Coates @nikkicoates.bsky.social · 22h

[niche content] I’m on my way out of payments regulation but I am glad that there is challenge to the BIS view out there because I’ve been watching well-respected people attempt to determine operational payments matters with reference only to monetary policy theory for a while

Disco Central Banker @centralbanker.bsky.social · 23h

I’m thrilled to announce my new ECB working paper on singleness of money and fungibility of stablecoins with other payment instruments! 🍾

Some BIS colleagues argued that stablecoins fail the singleness of money test… and the FT had this amazing quote…

But I disagree!

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Disco Central Banker @centralbanker.bsky.social · 22h

@tobyn.bsky.social

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Disco Central Banker @centralbanker.bsky.social · 23h

If you’re into stablecoins and payments, check out my new paper

Full paper: www.ecb.europa.eu/pub/pdf/scpw...
(clicking helps my stats )

If you think your network might find it interesting, please follow, like, and RT !

www.ecb.europa.eu

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Disco Central Banker @centralbanker.bsky.social · 23h

If above preconditions for accomplishing fungibility for tokenised funds/off-chain collateralised stablecoins are fulfilled, and if the on-chain collateral can be readily converted into higher level money whereas algorithmic stablecoins are not fungible means of payments.

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Disco Central Banker @centralbanker.bsky.social · 23h

Based on the above tokenised funds and off-chain collateralised stablecoins are fungible means of payments under some conditions, and on-chain collateralised stablecoins can be prima facie classified as fungible means of payments…

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Disco Central Banker @centralbanker.bsky.social · 23h

Business interoperability is the easiest.
You can only consider two stablecoins as interoperable (and interoperable with bank deposits) if they all offer similar rights (e.g. no redemption fee, right to immediate withdrawal…

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Disco Central Banker @centralbanker.bsky.social · 23h

Circle could issue new USDC as ERC-721 NFTs with the same rights as ERC-20 USDC, but that you can’t easily trade on DeFi, they’d lack semantic interoperability, you couldn’t trade them and would have to always redeem instead hence they would not be as much “money” as the ERC-20

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Disco Central Banker @centralbanker.bsky.social · 23h

Semantic interoperability is also very simple, if everyone issues their stablecoin using a specific format like ERC-20/BSC-20 and all DeFi protocol only accept these token formats then stablecoins can only be interoperable if they use this (or another retro compatible) format

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Disco Central Banker @centralbanker.bsky.social · 23h

On a side note, in the Euro Area, the ECB opens central bank payment accounts to non-bank so stablecoin issuers can directly access it.

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Disco Central Banker @centralbanker.bsky.social · 23h

Today the interoperability bridge has to be with traditional central bank
-operated payment systems because they are the ultimate means of payment.

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Disco Central Banker @centralbanker.bsky.social · 23h

your stablecoin needs to either be on Ethereum **or** or on blockchain that can bridge it to Ethereum.

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Disco Central Banker @centralbanker.bsky.social · 23h

Technical interoperability is super simple: it means using the same ledger for transactions **or** being able to bridge the value of the stablecoin into traditional systems.
Essentially, if everyone uses Ethereum and all DeFi is on Ethereum,…

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Disco Central Banker @centralbanker.bsky.social · 23h

Interoperability means that the stablecoin must have 1)Technical, 2) semantic and 3) business interoperability with traditional payment systems.

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Disco Central Banker @centralbanker.bsky.social · 23h

…you can’t be a fully fungible EUR stablecoin without directly offering EUR redemption, regardless of keeping peg on secondary market.

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Disco Central Banker @centralbanker.bsky.social · 23h

Convertibility means that the stablecoin has high quality reserves in the pegged asset AND can offer redemption at par in the pegged asset.
This is usually the focus of stablecoin regulation on reserve requirements…

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Disco Central Banker @centralbanker.bsky.social · 23h

Our paper argues that stablecoins achieve the singleness of money just like bank deposits or PayPal balances when they ensure:

1. Seamless convertibility into the ultimate means of payment.
2. Interoperability
3. Settlement finality

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Disco Central Banker @centralbanker.bsky.social · 23h

I’m thrilled to announce my new ECB working paper on singleness of money and fungibility of stablecoins with other payment instruments! 🍾

Some BIS colleagues argued that stablecoins fail the singleness of money test… and the FT had this amazing quote…

But I disagree!

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Disco Central Banker @centralbanker.bsky.social · 1d

I didn’t even had time to post that you already saw it

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Disco Central Banker @centralbanker.bsky.social · 1d

Cc: @smtuffy.bsky.social are is your joker arc going ?

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Disco Central Banker @centralbanker.bsky.social · 1d

Intercontinental Exchange (NYSE owner) takes $2 billion stake in Polymarket

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Disco Central Banker @centralbanker.bsky.social · 6d

Cyberattack triggers liquidity risk in Japan

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Disco Central Banker @centralbanker.bsky.social · 6d

Oh, you’re a Taylor Swift expert? Name all the places where she hosted SIBOS conferences.

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Disco Central Banker @centralbanker.bsky.social · 6d

Some people mentioned it at SIBOS

Disco Central Banker @centralbanker.bsky.social · 6d

Concerning

Aaron Rupar @atrupar.com · 7d

"After encouraging the conspicuously silent assembly of military leaders to applaud for him if they felt so inclined, Trump laid out a lawless, authoritarian vision for the armed forces, including fighting a 'war from within' against his domestic enemies."

Trump attempts a major step toward dictatorship

He's going for it. Who will stop him?

www.publicnotice.co

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