The dollar’s falling apart. What happens next

Back in the 1800s, cities ran on horses. Need to travel? Move stuff? Deliver mail? You used a horse.

Whole industries were built around them – stables, blacksmiths, hay sellers.

Horses were basically the backbone of urban life… but they were also, quite literally, the crap of it. Streets were full of manure, dead horses often just… stayed there, and diseases ran wild.

So, it worked, but it was gross.

Then, cars showed up – and you’d think people would be thrilled. No more poop on the streets, yay, amirite?

Wrong. Early cars were seen as loud and unreliable. Some cities even banned them.

And of course, all the horse-dependent industries freaked out – because this new “car” thing didn’t just seem impractical, it threatened their entire way of life.

But in 1908, Ford released Model T – a car that regular people could afford. Roads improved. Mechanics appeared. Cities got cleaner.

And suddenly… cars made sense.

By the 1920s, horses stopped being essential. It took nearly 30 years and fierce resistance, but the world moved on.

You probably see where this is going.

Crypto today is the car. TradFi is the horse lobby, judging innovation by old standards and clinging to a system that kinda works… but is also crappy.

I’m bringing this up because the Bank for International Settlements (BIS) recently released a report on the future of finance – and they had a lot to say about stablecoins.

They argue that while stablecoins offer some useful innovations, they are fundamentally unfit to be the core of tomorrow’s monetary system.

Let’s unpack some of their reasons – and where they hit or miss:

1/ Stablecoins aren’t consistent enough

BIS pointed out that different stablecoins (USDC, USDT) come from different companies, so their prices can vary.

✅ Why it’s a valid concern:

If people have to double-check which stablecoin they’re getting – and whether it’ll hold value – that isn’t great for trust or efficiency.

❌ But also:

Bank rates, payment apps, or dollars in different countries vary, too.

Small price differences don’t really matter to most users – they just want something that’s fast, easy to use, and cheap to send.

And stablecoins do that pretty well. Millions already use them daily – that’s a better reality check than obsessing over perfect 1:1 rates.

2/ Stablecoins aren’t flexible

Stablecoins don’t have elasticity – you can’t just print them on demand. You can only create new stablecoins if someone deposits real money or assets first.

✅ Sure:

In a crisis, central banks can pump money into the system to calm markets.

Stablecoins can’t do that, which could make shocks harder to manage.

❌ But also:

Elasticity is also how we got inflation, bailouts, and runaway debt.

Stablecoins are tight on purpose – to avoid those exact problems.

3/ Stablecoins are too anonymous

Because stablecoins run on public blockchains, and don’t always require ID checks, they can be used without revealing who’s behind the money.

✅ Why it’s a valid concern:

BIS says it’s the dream setup for criminals. If you don’t know who’s moving the money, it’s harder to catch ’em.

❌ However:

Blockchain transactions are actually more traceable than cash, because they’re permanently recorded on a public ledger.

Plus, most dirty money still flows through traditional banks.

4/ Stablecoins could destabilize financial markets

Most stablecoins are backed by government bonds.

If a lot of people try to cash out during a crisis, those bonds might have to be sold fast, which could cause prices to drop.

✅ Why it’s a valid concern:

That kind of shock can push up borrowing costs and cause market instability.

❌ But also:

The problem isn’t with stablecoins themselves – it’s with the lack of proper rules around how they’re managed.

Blaming the tech for regulatory lag is backwards.

5/ Stablecoins aren’t the future – but they hint at it

BIS says stablecoins won’t replace money, but they show what users want: speed, privacy, 24/7 access.

✅ From their angle:

CBDCs could take the best parts of crypto and deliver them with more protections.

❌ But:

Stablecoins exist because the old system failed too many people out.

Repackaging freedom into a new bureaucracy doesn’t fix the root issue.

In the end, the BIS is basically the central bank for central banks, and its job is to protect the TradFi system. Of course they’re gonna back the horse.

Stablecoins, and crypto in general, are the car.

Sure, they’re not perfect. But they respond to real human needs: access, autonomy, speed, and control. Things the old system isn’t delivering.

So now we wait: will the system evolve… or keep pretending the streets aren’t covered in horse poop?

Time will tell.