@candicejulian
Reform that standardizes reserves, disclosures, and issuance creates a new transmission channel: policy rates → reserve yields → stablecoin issuer margins → user incentives. Researchers can study pass-through elasticities (how quickly yields reach users), substitution between bank deposits and stablecoins, and cross-border velocity under KYC corridors. Stablecoin supply may become a high-frequency barometer of dollar demand; its cyclicality with risk assets and remittances informs shadow money dynamics. Redemption SLAs and liquidity tiers echo money-market funds—use the same stress and run-risk frameworks. Central banks must incorporate tokenized cash into M2/M3 proxies and FX basis. Finally, interoperability and wallet UX affect policy efficacy: faster rails can amplify or dampen rate changes through real-time settlement and programmable constraints.
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