Bitcoin and stablecoins will reshape global monetary policy, says Noelle Acheson

In a recent SlateCast episode, Noelle Acheson, author of the “Crypto Is Macro Now” newsletter, joined host Liam “Akiba” Wright and CryptoSlate CEO Nate Whitehill to discuss the growing influence of cryptocurrency on global macroeconomics and financial systems.

Crypto’s Impact on Monetary Policy

Acheson emphasized that crypto, particularly Bitcoin and stablecoins, is increasingly affecting monetary policy and capital flows worldwide. She noted:

“There is an alternative now to the central bank currency, to the commercial bank currency, to the fiat currency. There is an alternative that the authorities are struggling to control. And that is important for monetary policy.”

The discussion highlighted how cryptocurrencies provide options for individuals in countries with unstable currencies or restrictive financial policies.

Stablecoins and Global Finance

The conversation turned to the significant role of stablecoins, particularly Tether (USDT), in the global financial ecosystem. Acheson pointed out:

“Tether is a very key macro and crypto force. Crypto because of its size of its stablecoin and the spread of its use around the world, except the United States, and macro because of the amount it holds of U.S. government debt.”

The panelists discussed how Tether’s large holdings of US Treasuries could potentially influence macroeconomic policies.

Regulatory Landscape and U.S. Elections

Acheson shared her thoughts on the potential impact of the 2024 U.S. presidential election on crypto regulations:

“A Trump victory would be better for crypto. A Kamala victory, we don’t know. This is just still the very big unknown.”

She suggested that a change in SEC leadership could significantly shift the regulatory approach to cryptocurrencies, regardless of which party wins.

Crypto and Economic Transparency

Acheson highlighted an often-overlooked aspect of crypto adoption

“That crypto is not all about risk. That it is actually relatively safe. That, this is especially overlooked, it enhances transparency. I mean, why would a regulator not want to encourage the development of marketplaces where they can have a node and in real time see where the money is moving?”

This perspective challenges the common narrative that crypto primarily poses risks to financial systems.

Bitcoin’s Resilience and Market Sentiment

The discussion touched on Bitcoin’s unique position in the financial world. Acheson stated:

“Bitcoin cannot go to zero because nobody can switch it off… As long as there is one pair willing to swap Bitcoin, it does not go to zero.”

She also noted Bitcoin’s role as a sentiment indicator for global markets, especially when traditional markets are closed.

Future of National Crypto Adoption

The panelists explored the potential for more countries to follow El Salvador’s lead in adopting Bitcoin. Achison mentioned:

“We’re going to see more of them… There was a tweet thread out by Daniel Batten yesterday, today, I forget, I was just reading it this morning… [He] found eight governments, eight nation states that are using Bitcoin for environmental reasons.”

This suggests a growing trend of countries exploring Bitcoin for both financial and environmental purposes.

The SlateCast episode with Noelle Achison provided deep insights into the evolving relationship between cryptocurrency and macroeconomics. From influencing monetary policies to potentially reshaping national financial strategies, crypto’s impact on the global economic landscape appears to be growing.

As regulatory frameworks develop and more countries explore crypto adoption, the intersection of digital assets and traditional finance promises to be a critical area to watch in the coming years.

Listen to the full episode below:

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