15 True/False. Instant feedback + running score. Covers fiat-backed vs crypto-collateralized, reserves, redemptions, AML/KYC, peg risks, and directional effects on M1/M2.
1) A dollar stablecoin token itself is included in U.S. M2.
2) Fiat-backed stablecoins typically hold cash, T-bills, and/or MMFs as reserves.
3) Buying a fiat-backed stablecoin with a bank deposit generally increases M2 immediately.
4) Redeeming stablecoins back into a checking account can raise retail deposits (and thus M1/M2).
5) Algorithmic/fractional stablecoins (with little/no hard collateral) have been historically fragile in stress.
6) Issuers often earn interest on reserve assets (“the float”).
7) Paying a friend with USDC on-chain (no redemption) changes U.S. M1/M2 immediately.
8) If issuers hold T-bills/MMFs instead of bank deposits, large inflows can drain bank deposits.
9) Stablecoins “print new dollars” for the economy on their own.
10) Over-collateralized crypto-backed stablecoins typically maintain collateral significantly above 100%.
11) Freezing redemptions during stress has little/no effect on peg stability.
12) AML/KYC and sanctions compliance can apply to stablecoin issuers and off-/on-ramps.
13) A U.S. retail CBDC would be identical to private dollar stablecoins in governance and risk profile.
14) Using USD stablecoins abroad can extend dollar usage by making $ rails accessible on phones.
15) If an issuer keeps reserves as bank deposits, buying stablecoins will always increase M2.