Part 9/15:
Part of the conversation also explores stablecoins—digital tokens pegged to fiat currencies like the US dollar. Matt explains their origin as a practical solution for on-ramps and off-ramps in the crypto economy—especially when banking systems are uncooperative or heavily regulated.
He describes stablecoins like Tether or USDC, which are backed by reserves, but notes they rely on trust in centralized entities, contrasting with Bitcoin’s algorithmic scarcity and protocol-based monetary policy. These stablecoins serve as vital financial plumbing, enabling faster, cheaper cross-border transactions and offering refuge from collapsing local currencies, as seen in Turkey or Lebanon.