T&V Letter | Q3 2025

Insight

Dario Amodei, CEO of AI company Anthropic, warns that artificial intelligence could cause up to 20% unemployment in the coming years. Microsoft and Amazon have already cut jobs. The concern sounds plausible, but a look at the past paints a different picture. Whenever new technologies have revolutionized the labor market, certain jobs have disappeared, but at the same time new jobs have been created.

This pattern is called the Jevons paradox: efficiency gains do not necessarily lead to less work, but often to more economic activity. For example, typewriters and later computers made many secretarial tasks redundant. But they also laid the foundation for entirely new industries – from software and IT support to digital marketing. Overall employment did not collapse, it just shifted.

The same applies to AI: when companies save costs through automation, they can initiate projects that were previously unprofitable. New products, services, or entire business models become possible. Yes, simple tasks may disappear – but additional occupational fields are created elsewhere.

For investors, the key point is that technology rarely causes permanent mass unemployment, but rather change. Artificial intelligence is likely to increase productivity and prosperity, boost purchasing power, and create new demand. Companies that position themselves wisely early on can benefit twice over – through efficiency gains and opportunities in emerging markets.

Dear reader

As the stock markets have recently been trending sideways, we are taking this opportunity to focus on a topic that goes beyond daily market events. In this issue, we would like to introduce you to a topic that is gaining in importance and could change the financial world forever: stablecoins – digital dollars. You may have already come across this term. But what exactly does it mean, and why could it be so important for the future of money?

What is a stablecoin?

A stablecoin is a digital currency whose value is pegged to an existing currency, mainly the US dollar. This means that 1 digital dollar = 1 real dollar. This allows payments to be made cost-effectively and worldwide without having to worry about price fluctuations as with Bitcoin. Stablecoins combine the flexibility and accessibility of cryptocurrencies with the reliability of traditional currencies – and can be used around the clock, anywhere in the world.

What consumers appreciate about stablecoins

For many people, stablecoins are not a technical toy, but a practical aid: in countries with high inflation, they secure purchasing power, transfers abroad become cheaper and faster – and even without a traditional bank account, you can become part of the global financial world with a smartphone.

Stablecoins thus offer millions of people worldwide greater security, freedom, and participation.

Why the US actively promotes stablecoins

The US sees stablecoins as a key tool for securing its global financial power – and at the same time financing its government spending. The US government has even introduced its own law to regulate stablecoins.

The connection to government finances is obvious: each newly created digital US dollar (stablecoin) is backed by around 65% in US government bonds. This means that the more stablecoins are used, the greater the demand for US Treasuries – and thus the lower the financing costs for the government. Stablecoins are already making a measurable contribution to financing US debt. They are not only a modern means of payment, but also a powerful tool for securing the dollar's supremacy.

Tether, the largest stablecoin provider (USDT), now holds over $127 billion in US government bonds, making the company one of the largest private buyers of these securities worldwide. Together with another major provider, Circle (USDC), stablecoin issuers hold over $182 billion in US Treasuries. (Figures from September 10, 2025)

Europe watches with concern

Europe is watching this development with growing concern, as capital could flow out of Europe to the US – especially if digital dollars continue to gain in importance. Although the European Central Bank is working on the digital euro, the project is progressing slowly compared to the American initiatives. This means that Europe is in danger of falling behind in the race for the digital future of money.

Why we think Ethereum is important

Since the majority of stablecoins run on the Ethereum blockchain, Ethereum has become the preferred network. If stablecoins continue to grow – and there are many indications that they will (Citigroup estimates that the market for stablecoins will grow from $260 billion to $1,300 billion by 2030) – this will automatically strengthen the importance of Ethereum.

For us, this is a crucial point: Ethereum is not just "a cryptocurrency" but an infrastructure that works behind the scenes to ensure that millions of transactions function reliably every day. Stablecoins are a concrete example of how Ethereum creates real value.

Industry observers such as Tom Lee, Chairman of BitMine, already see stablecoins as the "ChatGPT story" of the crypto world – that is, the application that will make the big breakthrough and make the technology accessible to millions of people. At the same time, more and more applications and financial transactions are migrating directly to the blockchain, driven by innovations in tokenization and the growing importance of stablecoins.

Conclusion

Stablecoins are much more than a niche topic. They combine digital innovation with the stability of traditional currencies, strengthen the power position of the US and facilitate its financing – and they give us clear reasons to keep Ethereum as an important building block of our strategy in the long term.

Stablecoins have the potential to mark the beginning of a new era in the financial system – and Ethereum forms the foundation on which this development is built.

As always, we thank you for the trust you have placed in us!

*This communication is for information purposes only and constitutes neither a personal recommendation nor an independent financial analysis.