Digital Fiat issued by Banks

Filling out the 2nd-Party (2P) & 1st-Party (1P) Stablecoin Definitions.

Photo by bady qb on Unsplash

Ah, my favorite Stablecoin. The one I fell in love with in China (my favorite Foreign Country). The one who will be here in the US by 2025. The one who will Destroy all other Centralized IOU Issuance & Seignorage Share Stablecoins- permitting only On-Chain Overcollateralized ‘Digital Asset’ Stablecoins to live on: Digital Fiat issued by Banks.

It will be issued by either Commercial Banks or the Central Bank of a Nation.

If it is issued by a Commercial Bank: It is a 2P Stablecoin.

If it is issued by the Central Bank: It is a 1P Stablecoin.


  1. Issued by a Brand Name Institution (Chase, WellsFargo, Federal Reserve)
  2. Credited to a User’s Digital eWallet on their phone upon the Bank’s receipt of Physical Fiat.
  3. Can be used to pay for Gas/Groceries/Utility Bills/Whatever.
  4. Holders can walk into any bank branch across the US and redeem this Digital Fiat for $1 of Physical Fiat and then walk out.


Digital Fiat Issued by a Commercial Bank :

  1. Most likely only issued by the Big Boys: Chase, WellsFargo, BoA
  2. Redeemable at any corresponding Big Boy Bank Branch for Physical Cash (no fee)
  3. Also redeemable in-branch at any other Bank for Physical Cash (has a fee, just like ATM fees at a different bank)
  4. Released in 2025

Digital Fiat Issued by a Central Bank:

  1. Issued only by the Central Bank.
  2. Used mostly by small banks who have no need for their own ‘branded Stablecoin’.
  3. Redeemable at ALL banks for Physical Cash (no fee)
  4. Released in 2040

Why will Bank-Issued Digital Fiat destroy all other Stablecoins. (except for “On-Chain Overcollateralized Digital Asset” Stablecoins)

No Crypto-Startup Stablecoin will be able to compete with the ‘trust’ offered by Bank-Issued Digital Fiat: Being able to walk into any Bank Branch across the US and Deposit your Physical Fiat for Digital Fiat/Redeem your Digital Fiat for Physical Fiat is MAXIMUM ‘Trust’.

Being able to redeem the Digital Money for Physical Money at a Bank Branch makes the Digital Money ‘real’ in the eyes of the User. (Just like Gold-Backed Certificates from 1913–1933 made people believe the paper ‘money’ was real)

There is no other Stablecoin that can match that, and as a result this Bank-Issued Digital Fiat will act as a Black Hole for all other Stablecoin Ecosystems….sucking out more and more users as time goes on.


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