Stablecoins backed one hundred percent by public money solve the problems of microeconomic and macroeconomic stability that current fractional banking generates. Indeed, while bank deposits are backed by mortgages, loans to companies, etc. that have a risk of non-payment of liquidity, the "Full Reserve" Stablecoins are backed one hundred percent by safe money, issued by the State through its Bank. Central. And these stablecoins do not have the problems that arise from leaving the creation of money in the hands of private companies.

This is just one of the main messages of the latest Money Movement video entitled “Digital money comes of age.”

Jeremy Allaire maintains weekly dialogues on digital money at Money Movement that are quite interesting. I especially recommend the latter because it provides an overview of the very positive changes that can take place in money and finance if an adequate regulation is adopted, that is, one that does not fall into the errors of the current regulation, but rather allows greater stability. of money and greater innovation in payment services as a result of increased competition. All this without the need for the protectionism and interventionism of the State that characterizes the current system.

Until now, the debates on competition in payment services, as well as on the introduction of safe money (by means of Central Bank infrastructures or by Stablecoins fully backed by public money) remain among technicians but, as we are already seeing in the United States, these debates will end up entering politics, because legislative changes will be necessary. And the voting citizens and the elected politicians require general visions like these that help to understand not so much the detail of the new technologies as the possibilities they offer to achieve greater stability and greater innovation in our financial systems.