Confronting the Future

Confronting the Future by Austin explores the evolving landscape of finance, emphasizing the influence of cryptocurrencies and stablecoins, regulatory challenges, and the implications for banks and financial stability. It critiques regulatory approaches, advocates for clearer rules, and underscores the potential of blockchain technology to enhance financial security.

Cryptocurrency Finance Regulation Banking Financial Stability Blockchain Technology Financial Security

The hottest Substack posts of Confronting the Future

And their main takeaways

How Banks Fail

511 implied HN points • 05 Mar 23
💰 Finance Banking Investments Risk management Economics Crypto
  1. Banks can fail due to bad assets or a run on liabilities, which can often happen together.
  2. Be cautious with asset management, especially in rising interest rate environments and when extending in duration.
  3. Hot deposits can create volatility if depositors suddenly withdraw, impacting a bank's ability to meet obligations.

Systemic Incentives

137 implied HN points • 30 Aug 23
💰 Finance Banking Stablecoins Financial system Inclusion Competition
  1. When you deposit money into your checking account, the bank can use it however they want and only pay you a tiny amount, like 0.42% on average.
  2. Using stablecoins backed by short-dated T-bills can eliminate subsidizing risky borrowers, black box bank solvency issues, and slow payment transfers.
  3. Stablecoins may revolutionize the financial system by ensuring users do not subsidize risky borrowers, avoiding complex bank solvency risks, and eliminating legacy payment delays.

PYUSD

137 implied HN points • 07 Aug 23
💰 Finance Blockchain Stablecoins Payments Regulation Crypto
  1. Stablecoins like PYUSD are becoming inevitable in the global financial landscape.
  2. Public blockchains erode monopolies and offer new options for value exchange.
  3. Introduction of PYUSD by PayPal will lead to legislative action, regulatory scrutiny, and talent demand in the stablecoin space.

Downside Only, Again

39 implied HN points • 04 Sep 23
💰 Finance Financial system Crypto Consulting Consumer Protection
  1. Regulators are often underpaid and understaffed compared to financial industry professionals.
  2. Regulators receive blame but not enough credit for their work in maintaining financial stability.
  3. Regulators face challenges in knowledge and resources when dealing with the fast-paced and chaotic crypto industry.
Get a weekly roundup of the best Substack posts, by hacker news affinity:

Binance vs. SEC

58 implied HN points • 06 Jun 23
💰 Finance Regulation Cryptocurrency Investing Enforcement Market Analysis
  1. The SEC alleges that Binance has operated in the US as an exchange, broker dealer, and has misrepresented their activities.
  2. The SEC's broad stance on cryptocurrencies could lead to a lack of clarity for businesses operating in the US.
  3. The SEC's extreme temporary relief requests against Binance reflect a power struggle rather than genuine consumer protection.

Structure Matters

58 implied HN points • 05 May 23
💰 Finance Regulation Marketplaces Crypto Auditing
  1. Proposed framework for crypto regulation in New York is normal and reasonable in line with traditional finance standards.
  2. Exchanges in the crypto space are structured in a highly centralized manner, which is concerning to regulators.
  3. NY state's bill includes provisions for mandatory auditing, know-your-customer rules, and investor protections, aligning with typical financial practices.

Time to Panic?

2 HN points • 12 Mar 23
💰 Finance Banking Stablecoins Risk management Reserves Deposits
  1. Silicon Valley Bank faced a major bank failure, leading to significant implications in the banking sector.
  2. Depositors should be prioritized in bank resolutions to maintain stability and prevent mass panic.
  3. Bank runs can have widespread consequences, requiring regulators to ensure depositor confidence and prevent systemic failures.

Coming soon

0 implied HN points • 04 Mar 23
📚 Literature
  1. Jesse Austin Campbell is launching something new on Substack
  2. The content is about confronting the future
  3. Stay tuned for updates by subscribing