Not too hard to see this coming.

Banks have been issuing stablecoins since banking was invented. They’re called checking accounts — obligations of the bank (not the King), denominated in fiat, redeemable for fiat (just put your debit card in the your ATM), and backed by the bank’s own credit. Bank stablecoins won’t be backed by cash reserves any more than its checking accounts are backed by cash reserves. Why would the bank tie its hands that way?

Each bank will issue its own, because, like checking accounts, they will all be equally valuable. They will be backed by the FDIC —because they are just deposit accounts in a new form — and cleared through an analog of the Fed. Who knows, the Fed may even operated the blockchain. As the author notes, ordinary folks don’t distrust the government in the way crypto wackos distrust the government.