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Navigating Stablecoins and Blockchain Integration
This chapter examines the recent SEC-approved yield-bearing stablecoin, analyzing its implications as a security and its limitations in decentralized finance. The discussion extends to Bank of America's potential stablecoin launch, the inherent risks of tokenized deposits, and the disparities in interest rates as they relate to credit risk. Additionally, it explores the broader implications of blockchain technology in public contracts and governance, questioning feasibility and the necessity for transparency and privacy in state-funded services.