Macro Musings with David Beckworth Dan Awrey on the Future of the U.S. Payments System in a Digital World
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Feb 9, 2026 Dan Awrey, Cornell law professor and author of Beyond Banks, explores the future of money and payments. He discusses the shadow monetary system, stablecoin fragility, and why access to core infrastructure matters. He outlines proposals for master accounts, interoperability, and regulatory fixes. The conversation highlights trade-offs between innovation, stability, and who ultimately backs non-bank money.
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Separate Money From Payments
- Money and payments are different: money relies on law and institutions while payments rely on technology and governance.
- Unbundling them helps design sound money policies and better payment rails for the digital age.
Generations Choose Different Money
- David Beckworth recounts generational payment differences, like younger people preferring Venmo over cash.
- Dan Awrey notes short-term payment features dominate usage while long-term stability matters in stress.
Bankruptcy Is Money's Kryptonite
- Most payment innovations fail the fixed-nominal-value test because they remain subject to bankruptcy rules.
- Bankruptcy stays and unsecured claims make credit-based money fragile during crises.
