In the latest episode of "Credit Matters," Shankar Ramakrishnan and Bruce Clark speak with Jill Cetina (Executive Professor and Associate Director of the Commercial Banking Program, Texas A&M University) about how Bitcoin’s market role has shifted as alternatives like precious metals and stablecoins have gained traction.
They discuss dollar weakness versus recent commodity-driven shocks tied to the Strait of Hormuz, the risk that inventory drawdowns could trigger parabolic moves in oil and other Gulf-linked commodities, and how that could feed inflation, recession risk, and higher Treasury yields amid global bond-market pressures.
Cetina frames stablecoins as a potential tool for boosting T-bill demand and supporting Treasury debt management, but warns they may crowd out bank deposits and small-business lending. The conversation also critiques proposed bank deregulation, arguing key lessons from the 2023 regional banking crisis on liquidity and interest-rate risk remain unaddressed.