The age of private money has already begun.
On October 27, the Bank of Korea released a report titled “Key Issues and Policy Directions for the Korean-Won Stablecoin.”
It pointed out that stablecoin issuers are earning enormous profits through seigniorage — the profit from issuing currency.
A striking example is Tether (USDT), the world’s largest U.S. dollar–based stablecoin.
Tether’s operating profit per employee is a staggering $130 million (₩143 billion).
By comparison, global financial giants like BlackRock ($300K), J.P. Morgan ($190K), and HSBC ($150K) look almost humble.
Seigniorage — The Profit of Printing Money
The mechanism is simple.
When a stablecoin is issued, it is backed by real U.S. dollars deposited in banks or invested in government bonds.
The interest earned from those assets doesn’t go to the users — it goes straight to the issuer.
When you pull out a dollar from your wallet and buy one coin,
your dollar moves to the issuer’s account.
The coin sits in your digital wallet,
but the interest your dollar earns belongs entirely to them.
Simply by issuing digital money, the issuer profits.
That is the true essence of a stablecoin.
“Unlike central or commercial banks, private stablecoin issuers keep the entire seigniorage for themselves.”
Commercial banks return part of that profit as interest to depositors.
Central banks remit it to the national treasury.
But private stablecoin companies pocket it all.
We often believe that stablecoins are the future of finance —
a revolutionary alternative to the SWIFT system and international remittance.
In reality, they are a corporate profit machine disguised as currency.
The Rise of a New, Private Central Power
As of June 2025, the global market capitalization of stablecoins reached $252.9 billion,
with over 90 percent pegged to the U.S. dollar (USDT, USDC, etc.).
They preach “decentralization,”
yet in practice they represent an extreme concentration of financial power.
While blockchain claims to symbolize democracy,
stablecoins have quietly created a “private central bank” that transcends nations.
Coins vs. Stablecoins — A Fundamental Divide
Bitcoin and other typical cryptocurrencies belong to the world of speculation.
Open any trading app and you’ll see
familiar charts of red and blue candles, volumes, and tickers —
just like the stock market, but with one major difference: no closing bell.
Prices move at midnight, at dawn, endlessly.
Flashing numbers whisper, “Get in now before it’s too late.”
The illusion of buy low, sell high seduces anyone watching.
But those graphs visualize nothing more than belief.
No assets, no dividends, no voting rights —
only the hope that someone will buy higher than you did.
That is what a coin is.
A stablecoin, however, is different.
Its value is fixed — 1 coin equals 1 USD.
It’s not a fantasy but a digital dollar that functions as
a faster, cheaper alternative to the old SWIFT system.
The Irresistible Logic for States and Corporations
The real magic lies in the reserve deposit system.
To issue 1 coin, the issuer must deposit 1 USD —
then invests it in safe assets and keeps the interest.
The user gains nothing from this process.
Your $1 becomes their asset,
and the yield from that asset becomes their profit.
A perfect system: certain profit, no responsibility.
Who could resist?
Governments eye it with envy through CBDCs (Central Bank Digital Currencies),
while corporations replicate it through private stablecoins —
different names, same logic.
Who Will Actually Use It?
It’s a fair question: Why would ordinary people need this?
Because for many, it’s not optional — it’s essential.
For the unbanked, the underbanked,
and citizens of countries with unstable currencies,
stablecoins are the only accessible form of digital dollar.
They transfer instantly, cost little, and don’t fluctuate.
Even in regions where U.S. dollars are scarce,
stablecoins work as their substitute —
fast, practical, and borderless.
Once people start using them,
they rarely go back.
In the Age of AI, Money Must Be Machine-Readable
Soon, most transactions won’t be made by humans but by AI systems.
AI will read, calculate, and send payments on our behalf.
Money that AI cannot read will be excluded from the market.
Cash has no meaning to a machine.
Once it’s not recognized, it ceases to exist.
In the near future, only digital, data-readable currency will count as real money.
To AI, physical banknotes are nothing more than scraps of paper.
As a result, cash will fade into the periphery,
while digital wallets become the true home of money.
Earth Under Starlink
“But what about places without internet access?” you might ask.
That world is rapidly disappearing.
Look up, and you’ll see Elon Musk’s Starlink satellites orbiting above.
Wherever their signal reaches,
transactions and remittances will be possible —
in jungles, in the Arctic, anywhere.
AI and satellites together are quietly building
a new planetary financial network around us.
Two Wallets, Two Worlds
Eventually, humanity will live with two digital wallets.
One will be a CBDC wallet —
the official, government-issued currency for verified citizens.
The other will be a stablecoin wallet —
for those outside the formal system:
people without bank accounts,
those who distrust their national currency,
or simply anyone seeking autonomy.
Dozens of national digital currencies and corporate stablecoins will emerge,
but over time, they will converge into two dominant forms:
the digital dollar (CBDC) and Tether (USDT).
Even in the digital era, the center of gravity remains the dollar.
Global wealth will keep flowing back to the United States.
The Endgame of Global Currency
This transformation will make people demand
simpler and more stable circulation of money.
For years we tolerated the inconvenience of currency exchange,
but with stablecoins, there’s no reason to anymore.
As their use spreads, national currencies will weaken.
No government-issued digital money can fully resist that gravity.
People will prefer the unrestricted convenience of stablecoins,
and their trust will shift accordingly.
They will convert assets into digital dollars,
local currencies will wither,
and the dollar-linked stablecoin will dominate.
In the end, people will say:
“Then let’s just make the dollar the world’s single currency.”
The Last Glance
How many more days will I look down
at the familiar face printed on my country’s banknote
and still believe in its worth?
Tonight, I feel the urge
to finally study stablecoins — before they become my only money.
—
By Sunjae Park
Editor, Korea Insight Weekly