Program and Guest
A lecture by the Hoover Institution’s Economic Policy Working Group, presented by Michael Bordo, a distinguished visiting fellow at the Hoover Institution. Original English title: Money and Power: Historical Lessons for Stablecoins and U.S Dollar Dominance | Michael Bordo. The subtitles cover 0:00–73:45; this article covers the full lecture and Q&A.
Key Points
- Historically, five conditions have been necessary for private money to operate safely. A condition-by-condition comparison with the GENIUS Act shows that several gaps remain unresolved. 33:50
- The act explicitly states that there is no lender of last resort and no implicit bailout, a provision that carries implications about being too big to fail. 35:03
- Circle’s USDC lost its peg when Silicon Valley Bank failed and recovered only after all deposits were insured. 36:42
- Monetary power depends on institutional credibility, not payment technology. 67:23
- The U.S. 10-year interest rate is now on par with France’s—goodbye to the convenience yield. 69:51
Background and Notes
This Hoover Institution lecture uses the history of private money to assess whether stablecoins can operate safely at scale and examines gaps in the GENIUS Act. The subtitles cover 0:00–73:45; this article covers the full lecture and Q&A. The views and timestamps are paraphrased from the original subtitles; each timestamp marks the beginning of the segment containing the corresponding remarks.