Locking the Stablecoin Door

Stablecoins are important and they need good regulation.

Dateline: Woking, 10th July 2022.

The fascinating death spiral of the not-at-all-stablecoin Terra is a worked example of “Ponzinomics”. It wasn’t a black swan or a flying pig or a once-in-a-million-years combination of market circumstances that could not have been predicted. Far from it. It was a consequence of the economic model widely anticipated by a great many well-informed industry observers, including the respected commentator Frances Coppola (who had been mocked by the Terra founder Do Kown for being “poor” when she suggested that the Terra model might not be sustainable in the long run).