Stablecoins Are The New Eurodollars | Daniel Neilson on Death Spirals, Liquidity Runs, and The Fragility of Par
b'Daniel Neilson, professor of economics at Bard College at Simon\\u2019s Rock and author of \\u201cSoon Parted,\\u201d returns to Forward Guidance to share findings from his seminal paper, \\u201cOn par: A Money View of stablecoins.\\u201d Co-authored with I\\xf1aki Aldasoro and Perry Mehrling as a working paper for the Bank For International Settlements (BIS), this paper compares on-chain currency (stablecoins) to Eurodollars to explore how they deal with issues of liquidity and par settlement. Filmed on December 8, 2023.\\nToday\\u2019s interview is brought to you by Sustainable Bitcoin Protocol, an environmental solution for bitcoin. Interested parties can find out more at https://bit.ly/46gFlgr\\n_\\nBIS Paper, \\u201cOn par: A Money View of stablecoins\\u201d: https://www.bis.org/publ/work1146.pdf\\nDan Neilson\\u2019s newsletter, Soon Parted: https://www.soonparted.co/\\nDan Neilson\\u2019s book, \\u201cMinsky\\u201d: https://www.amazon.com/Minsky-Daniel-H-Neilson/dp/1509528504\\nFollow Dan Neilson on Twitter https://twitter.com/dhneilson\\nFollow Jack Farley on Twitter https://twitter.com/JackFarley96\\nFollow Forward Guidance on Twitter https://twitter.com/ForwardGuidance\\nFollow Blockworks on Twitter https://twitter.com/Blockworks_\\n__\\nUse code FG20 to get 20% off Blockworks\\u2019 Digital Asset Summit in March: https://blockworks.co/event/digital-asset-summit-2024-london\\n__\\nTimestamps:\\n(00:00) Introduction\\n(01:34) Why Stablecoins?\\n(04:46) The Issue Of Par\\n(09:43) The Great Financial Crisis Of 2008\\n(12:12) Did The Fed\'s Rate Surge Halt The Stablecoin Boom?\\n(22:06) Stablecoins, The New Eurodollars\\n(24:20) The Need For Smooth Forward Markets\\n(27:40) There\'s No Central Bank In Crypto\\n(34:22) Silicon Valley Bank and Circle\\n(49:43) Tether\\n(01:02:20) The Role Of Zero Interest Rates\\n(01:05:01) The Role Of Stablecoins: "Lots of Fireworks"\\n\\n__\\nDisclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.'