STABLECOINS ARE 'CENTRAL BUSINESS DIGITAL CURRENCIES'

Summary from the TLDR Crypto newsletter

Privately-issued stablecoins are "central business digital currency" featuring all the surveillance, backdoors, programmability, and controls of CBDCs, plus unique risks, and that issuers like JPMorgan could freeze funds and unbank users through the Patriot Act or future regulations. Overcollateralized stablecoins backed by cash and short-term government securities face bank run risks if too many holders attempt simultaneous redemptions, while algorithmic and synthetic stablecoins carry counterparty risks and de-pegging vulnerabilities from volatility or flash crashes in crypto derivatives markets.