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This almost reads a bit like FUD, what do others think? It is interesting that it was written by a Libra employee
Funny that Coinbase published an ad highlighting how they‘re not going to take fees on their USDC payments, and at the same time this article says that they‘ll have to introduce some kind of fee https://youtu.be/FFAfQIl1UOA?si=yxiC4YdBLPof7YVy
He has some fair points, IMO. If you run a stablecoin business, you're basically in the treasury investing business. So, the interest rates can make or break your business. If you, e.g., had the ZIRP environment for a few years, it might be hard to run it. I don't agree that redemption fees would be a big problem, though. You already pay off-ramp fees, so why wouldn't you pay to redempt your stablecoins? I also don't think he has a point with EURO-backed stablecoins being used outside Europe. Saying that banks will be competitors is also missing the point that banks don't understand crypto and don't have enough agility to react to the market as fast as crypto-first competitors. Also, he says that liquidity wouldn't matter that much as it can move. Well, say that to L2s trying to get people to move from using USDT on Tron. They've been trying for years, and the results aren't too promising. I do agree with his conclusion, though, that "pure play" stablecoin issuers are going to have a hard time - that's why Circle is so closely tied with Coinbase, and I think Tether will also find its distribution partners (on top of Binance) that might buy a share of their company.