Peter Johnson wrote this short explanation with some resourses:
In the coming years, stablecoins will grow to well over $1tn outstanding. As this happens, they will become a significant part of dollar deposits outside of the U.S. banking system (commonly known as Eurodollars).
To understand the future of stablecoins, it will be important to understand the role of Eurodollars, which seem to be a market that is not widely well understood or written about.
I anticipate many crypto folks are going to want to gain a greater understanding of the Eurodollar market in the coming years, so to assist with this, here are some resources I have found helpful:
Milton Friedman paper: https://files.stlouisfed.org/files/htdocs/publications/review/71/07/Principles_Jul1971.pdf
Marvin Goodfriend (St. Louis Fed) paper: https://www.richmondfed.org/~/media/richmondfedorg/publications/research/special_reports/instruments_of_the_money_market/pdf/chapter_05.pdf
Some added resources:
This is an excellent article on the offshore dollar funding markets issues and ongoing demand for dollars “Down The Rabbit Hole” – The Eurodollar Market Is The Matrix Behind It All | Zero Hedge https://www.zerohedge.com/markets/down-rabbit-hole-eurodollar-market-matrix-behind-it-all
@EmilKalinowski & @JeffSnider_AIP have a great episode on how crypto helps with the currency elasticity problem. Also, fascinating historical references. Crypto Currencies for Money of Account can be more useful than just Store of Value. https://www.youtube.com/watch?v=zt1qukLvhKc&feature=youtu.be