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STABLECOINS: TOWARD AN INVISIBLE DOUBLE SPENDING AND HIDDEN INFLATION?

  • khazzaka
  • 5 days ago
  • 1 min read

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Michel Khazzaka, guest of Cryptoast, deciphers the economic challenges of the post-euro era.


In this new interview with cryptoast.fr, I revisit an idea that challenges our entire understanding of stablecoins and today’s monetary system.


Fiat-backed stablecoins — such as USDT, USDC, or tomorrow a private digital euro — quietly create an invisible double spending effect. When a user deposits one euro to mint a stablecoin, that euro is often reinvested by the issuer into Treasury bonds. These bonds finance immediate public spending, while the stablecoin itself continues to circulate in the digital economy. The result: the same value is used twice — once by the State, once by the user.


This invisible duplication expands the money supply and fuels hidden inflation, beyond the control of central banks. It’s a new form of private monetary creation, turning stablecoin issuers into actors of a parallel monetary policy.


In the interview, I also discuss the risk of monetary control loss in Europe with the arrival of the digital euro — not as a currency, but as a means of payment. I highlight the urgent need to rethink the boundary between public money, private money, and financial innovation.


🎥 Watch the full interview here:



 
 
 

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