Alexander LorenzoCoinPicks, CoinPicks · Founder & Chief Investment Officer CoinPicks Capital 👇🏾This strategy made me 8 million dollars

Why Bank Made Stablecoins Could Reshape Everything

29 Aug 2025 · 1 min

Watch on YouTube

1:25

In this monologue, the speaker explains how banks could issue their own digital dollars—stablecoins fully backed by safe assets such as U.S. Treasury securities or cash. He illustrates the concept with a $50 million loan scenario: a business borrows from a bank, then converts a portion of the loan into the bank’s stablecoin, effectively creating new debt that is “free money” from the government because the bank can issue more debt backed by treasuries. The speaker warns that this mechanism mirrors historical episodes when American banks each issued their own currency, leading to a “dollar war” that eventually resolved with a single national currency, and he links large‑scale currency printing to the financing of major conflicts like World Wars I and II. The overall narrative cautions that bank‑issued stablecoins could dramatically reshape credit creation, monetary policy, and geopolitical risk.

Chapters

So now banks can create their own digital dollar, its own stablecoin, as long as it's fully backed by safe assets like treasuries or cash. Think about that. Treasuries, this is government debt. Think about it this way. Let's say a business takes a $50 million loan from Bank A. The bank gives them the money according to the interest rates. Now they're more likely to take these loans because interest rates are going to be dropping. Okay. Now think about this. This is where it gets really crazy. Now what if that business decides to take $10 million Of that fifty million and put it into Bank A's stablecoin. They could do that. So the bank itself gave the loan, which is free money from the government, right? Basically, they have to pay it back, but they never do. They give they just issue more debt. So it's like free money from the government. That business can now technically buy the the bank stablecoin. So they're making new debt. To put that money into a stablecoin. This is not the first time we've seen stuff like this. We actually seen this in the creation of America where there were banks were all creating their own dollar and only one dollar won. It was like a, it was like a dollar war. And a lot of wars, there's, you know, there's speculation where even World War I and World War II was started because of currency printing. And we're not going to go into the details of that, but we have seen this before. You can study history. This has happened before with physical dollars.