But, at least insofar as the financial markets thereby lessen the scope for a monetary policy that is detrimental to stability and a fiscal policy that inflates debt, the economist will not deplore that fact unduly. For a policy that fosters inflation and exacerbates national debt widens scope, at the most, for a temporary period; in the longer run, any such scope is narrowed.
Unlike social media platforms or ridesharing applications, payment systems cannot be designed as they develop, due to the nexus with consumers’ financial security. This is why in many jurisdictions, including the European Union, there is a regime to oversee retail payment systems. Without requisite safeguards, stablecoin networks at global scale may put consumers at risk.