Singapore’s @token2049 is kicking off, and hundreds of stable coin issuers are coming to town to sell their “unique” US dollars. But is it the first time liquid dollar reserves are accumulated all around the world in massive scale? In 1968, Singapore launched the Asia Dollar Market to compete with London's Eurodollar market. Hong Kong initially resisted, then frantically caught up 18 years later when they realized Singapore was eating their lunch. Here's what Hong Kong missed: All major financial innovations start offshore, then get copied onshore once they prove successful. The Eurodollar market: Started in 1950s London because Soviet banks needed to hold US dollars outside US jurisdiction. London banks offered higher rates because they weren't bound by Federal Reserve regulations. Result: By the 1970s, US banks were losing market share. The Fed had to deregulate domestic markets just to compete with what London created offshore. Credit default swaps: Developed in London's...
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