Sei Labs Unpacks the 'Impossible Quartet': Stablecoins, the Fed, and Global Monetary Policy
Stablecoins’ Silent Revolution: The Fed as a Global Retail Bank? The rapid proliferation and adoption of dollar-pegged stablecoins have often been celebrated for their efficiency in cross-border payments, their role in lubricating the DeFi ecosystem, and their promise of financial inclusion. However, a recent research paper from Sei Labs presents a thought-provoking analysis, arguing that these digital dollars are inadvertently transforming the U.S. Federal Reserve into a de facto global retail bank and introducing an “impossible quartet” for central banks worldwide. This research challenges us to reconsider the profound, often unseen, implications of Web3 innovations on traditional financial sovereignty and global monetary policy. ...