Stablecoins latest reason to worry about the dollar

On any list of oxymoronic investments, stablecoins might deserve a spot right near the top.

A stablecoin is, by definition, a variety of cryptocurrency meant to remain stable, being pegged to another very reliable asset. For most, we’re talking about US Treasury securities. Sure, stablecoins can use commodities, reserves of traditional assets and employ algorithms to control supply and maintain their peg.

But since virtually all financial roads eventually lead to US government debt, crypto enthusiasts know that the foundations underneath digital assets of all stripes are dollars. And that’s its own existential challenge for the crypto world.