Dr Philipp Paech quoted in Financial Times Big Read on the global stablecoin battle

Dr Philipp Paech was quoted extensively in a Financial Times Big Read by financial markets journalist Nikou Asgari, exploring the escalating confrontation between Wall Street banks and crypto companies over stablecoins — the digital tokens pegged to sovereign currencies that some see as the future of money and others as a threat to the stability of the global financial system. The article, 'The stablecoin war: Wall Street vs crypto over the future of money', examines whether allowing crypto platforms to pay interest on stablecoins could drain deposits from the banking system and create a parallel, less regulated financial ecosystem. Dr Paech commented on the systemic risks of deposit migration, the limited novelty of stablecoins as payment instruments compared with e-money which is widely used in the UK and the EU, the lack of business case given the availability of instant payments and stablecoins particular susceptibility to use in illicit finance. The piece features senior executives from JPMorgan, Goldman Sachs, Coinbase, Circle and Ripple, alongside regulators including the Bank of England and the European Central Bank.