In this episode, Professor Ravi Sarathy explains how stablecoins work, what the GENIUS Act changed, and why USDT and USDC now control $300 billion in market cap. He also explores the risks: What happens if everyone tries to redeem at once? Is it healthy for two companies to dominate global digital payments? And why don't stablecoin holders have the same protections as bank depositors?
You'll discover: → How one-to-one reserves create price stability → The Terra LUNA collapse and why it triggered new regulations → What the GENIUS Act requires from stablecoin issuers → Why stablecoins are reinforcing US dollar dominance globally → The "collateral fragility" risk that hasn't been tested yet → How banks are fighting back with deposit tokens
Whether you're a business leader evaluating cross-border payment options or an investor trying to understand the stablecoin landscape, this episode cuts through the complexity.
RESOURCES: Enterprise Strategy for Blockchain (MIT Press): https://mitpress.mit.edu D'Amore-McKim School of Business: https://damore-mckim.northeastern.edu
ABOUT THE HOST: Ravi Sarathy is a Professor of International Business and Strategy at Northeastern University's D'Amore-McKim School of Business. He is the author of "Enterprise Strategy for Blockchain" from MIT Press and an expert in global strategy, emerging technologies, and digital transformation. He is currently working on a new book on global payments.
ABOUT THE SHOW: International Business Today explores critical issues in global business with top academic experts and thought leaders. Hosted by professors from Northeastern University's D'Amore-McKim School of Business.
SUBSCRIBE: YouTube: https://www.youtube.com/@InternationalBusinessToday Spotify: https://open.spotify.com/show/2y21XexVdXEiTBdZQIuSyf Apple Podcasts: https://podcasts.apple.com/sg/podcast/international-business-today/id1665009512
DISCLAIMER: This content is for educational purposes only and does not constitute financial or investment advice. Cryptocurrency investments are volatile and carry significant risk. Please consult a qualified financial advisor before making any investment decisions.
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