[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  EndGame Macro [@onechancefreedm](/creator/twitter/onechancefreedm) on x 39.9K followers Created: 2025-07-19 02:37:24 UTC When the BIS warns that “stablecoins are a threat to financial stability,” what they are doing, perhaps more explicitly than ever before is acknowledging that the very architecture of modern money is under threat. Not because stablecoins are inherently reckless or volatile, but because they function as offshore monetary networks that replicate the utility of sovereign money while operating outside the control of central banks. That is the heart of the matter. Today’s dominant stablecoins, particularly those pegged to the U.S. dollar like USDC and Tether, are not speculative fringe tools. They are now embedded within the functioning core of the global financial system. They facilitate cross border transactions, act as collateral in DeFi lending protocols, settle hundreds of billions in trade volume, and are increasingly being integrated into institutional payment systems. Most critically, they do all this without the direct involvement of central banks. They move faster than SWIFT, settle outside of the Fed’s real time gross settlement system, and create a parallel rail for synthetic dollars to circulate globally, uninterrupted by jurisdictional borders or capital controls. To the BIS, this is a governance crisis. Stablecoins weaken the tight coupling between national currencies, domestic monetary policy, and financial system oversight. They offer nations (especially emerging markets) a means to exit local monetary regimes in favor of liquid, dollar-based digital alternatives. That creates the potential for rapid capital flight, destabilizing FX pressures, and the hollowing out of local financial intermediation. The BIS knows that a token that looks, feels, and functions like a dollar but is not governed by the Federal Reserve or any G7 institution poses not just a market risk, but an existential institutional challenge. The deeper twist is that the BIS isn’t issuing this warning to shut stablecoins down. It is laying the groundwork for replacing them with something more powerful, programmable, and institutionally sanctioned. This is where the concept of the “unified ledger” comes in. The BIS envisions a future in which central bank reserves, commercial bank deposits, and tokenized government securities coexist on an integrated digital platform, a programmable financial OS, governed not by protocols but by monetary authorities. In this framework, the state absorbs the technological edge of stablecoins while stripping them of their autonomy. Think of it as the “state’s DeFi” that’s faster, more transparent, but fully compliant and tightly surveilled. This is not a war between stablecoins and fiat. It is a war between two models of trust: one based on code, collateral, and markets; the other on jurisdiction, policy, and legal force. The BIS understands that programmable money is inevitable, it just wants to ensure that when this infrastructure becomes foundational, it is the state, not private issuers, who write the rules. So yes, stablecoins are a threat but not in the way the headlines suggest. They are a threat because they’ve exposed just how fragile and outdated much of the legacy financial infrastructure has become. And rather than extinguish them, the BIS is preparing to co-opt their logic into the next generation of monetary control. What we’re witnessing is the state’s realization that the only way to survive the coming transformation is to build a better, programmable empire of money, and to do it fast.  XXXXXX engagements  **Related Topics** [coins](/topic/coins) [networks](/topic/networks) [money](/topic/money) [stablecoins](/topic/stablecoins) [bis](/topic/bis) [macro](/topic/macro) [endgame](/topic/endgame) [Post Link](https://x.com/onechancefreedm/status/1946398938795331867)
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EndGame Macro @onechancefreedm on x 39.9K followers
Created: 2025-07-19 02:37:24 UTC
When the BIS warns that “stablecoins are a threat to financial stability,” what they are doing, perhaps more explicitly than ever before is acknowledging that the very architecture of modern money is under threat. Not because stablecoins are inherently reckless or volatile, but because they function as offshore monetary networks that replicate the utility of sovereign money while operating outside the control of central banks. That is the heart of the matter.
Today’s dominant stablecoins, particularly those pegged to the U.S. dollar like USDC and Tether, are not speculative fringe tools. They are now embedded within the functioning core of the global financial system. They facilitate cross border transactions, act as collateral in DeFi lending protocols, settle hundreds of billions in trade volume, and are increasingly being integrated into institutional payment systems. Most critically, they do all this without the direct involvement of central banks. They move faster than SWIFT, settle outside of the Fed’s real time gross settlement system, and create a parallel rail for synthetic dollars to circulate globally, uninterrupted by jurisdictional borders or capital controls.
To the BIS, this is a governance crisis. Stablecoins weaken the tight coupling between national currencies, domestic monetary policy, and financial system oversight. They offer nations (especially emerging markets) a means to exit local monetary regimes in favor of liquid, dollar-based digital alternatives. That creates the potential for rapid capital flight, destabilizing FX pressures, and the hollowing out of local financial intermediation. The BIS knows that a token that looks, feels, and functions like a dollar but is not governed by the Federal Reserve or any G7 institution poses not just a market risk, but an existential institutional challenge.
The deeper twist is that the BIS isn’t issuing this warning to shut stablecoins down. It is laying the groundwork for replacing them with something more powerful, programmable, and institutionally sanctioned. This is where the concept of the “unified ledger” comes in. The BIS envisions a future in which central bank reserves, commercial bank deposits, and tokenized government securities coexist on an integrated digital platform, a programmable financial OS, governed not by protocols but by monetary authorities. In this framework, the state absorbs the technological edge of stablecoins while stripping them of their autonomy. Think of it as the “state’s DeFi” that’s faster, more transparent, but fully compliant and tightly surveilled.
This is not a war between stablecoins and fiat. It is a war between two models of trust: one based on code, collateral, and markets; the other on jurisdiction, policy, and legal force. The BIS understands that programmable money is inevitable, it just wants to ensure that when this infrastructure becomes foundational, it is the state, not private issuers, who write the rules.
So yes, stablecoins are a threat but not in the way the headlines suggest. They are a threat because they’ve exposed just how fragile and outdated much of the legacy financial infrastructure has become. And rather than extinguish them, the BIS is preparing to co-opt their logic into the next generation of monetary control. What we’re witnessing is the state’s realization that the only way to survive the coming transformation is to build a better, programmable empire of money, and to do it fast.
XXXXXX engagements
Related Topics coins networks money stablecoins bis macro endgame