Bitcoin as Pristine Collateral, Stablecoins, and the Future of Finance
In Episode 2 of the Stablecoin Solutions Podcast, I sit down with CJ Konstantinos, founder of People’s Reserve, for a wide-ranging and deeply technical conversation on where Bitcoin, stablecoins, and traditional banking are headed.
CJ is a longtime Bitcoiner with a background in accounting and finance, and he brings a rare ability to bridge traditional financial systems with Bitcoin-native thinking. We unpack why Bitcoin is emerging as pristine collateral, how stablecoins are quietly dismantling fractional-reserve banking, and why banks that fail to adapt may not survive the next decade.
This episode goes far beyond price action. We dive into collateral theory, DeFi vs. TradFi, the GENIUS Act, stablecoin regulation, and even a preview of a revolutionary Bitcoin-backed mortgage insurance model that could reshape housing affordability.
Episode 2 — Key Timestamps & Topics
00:00 – Introduction
Welcome to Episode 2
Introducing CJ Konstantinos, Founder of People’s Reserve
02:15 – CJ’s Background
Accounting, finance, Austrian economics
Discovering Bitcoin as an alternative financial system
03:45 – Early Bitcoin Adoption
Buying Bitcoin at ~$150
Mining, market cycles, and early skepticism
04:40 – Bitcoin Volatility & Market Psychology
Fear & Greed Index
Why Bitcoin isn’t volatile — people are
06:10 – Institutional Adoption
BlackRock, ETFs, Larry Fink, Jamie Dimon
Bitcoin as an emerging equity layer
07:30 – Bitcoin vs. Gold vs. Treasuries
Settlement speed
Cost and trust issues with traditional collateral
09:40 – Bitcoin as “Pristine Collateral”
Absolute digital scarcity
Verifiability, instant settlement, and trust
12:00 – Inflation, Trust, and Fiat Currency
Why trust—not CPI—is the real trigger for hyperinflation
Treasury debasement since 2020
15:10 – Never Sell Your Bitcoin
CJ’s personal story: buying a home with 100 BTC
The cost of violating Bitcoin’s golden rule
17:30 – Eliminating Liquidation Risk
Cross-collateralized loans (Bitcoin + property title)
Why margin-based Bitcoin loans are flawed
19:15 – Banks vs. Bitcoin-Native Lending
Why banks still misunderstand Bitcoin
Bitcoin treated as a speculative asset, not collateral
21:45 – “Stack Sats, Spend Stables”
Why Bitcoin is savings tech
Stablecoins as spending tech
24:00 – Merchants, Payments & Stablecoins
Credit card fees vs. Bitcoin & stablecoin rails
Merchant incentives and settlement efficiency
27:00 – Credit Cards, Float, and DeFi
Why credit cards are becoming obsolete
Borrowing at interbank rates via DeFi
32:45 – Banks Are in Trouble
Fee extraction models
Why stablecoins move money faster than banks
34:15 – Fractional Reserve Banking Explained
What fractional reserves really mean
Why FDIC exists
37:00 – Silicon Valley Bank & the Bank Term Funding Program
Interest rate risk
How the Fed absorbed bank balance sheet losses
39:30 – Stablecoins vs. Bank Deposits
Fully reserved money
24/7 access without permission
40:30 – Why Stablecoins Will Kill Fractional Reserve Banking
Tether as the most profitable “bank” in the world
Fully reserved models vs. leveraged banking
43:00 – GENIUS Act & Treasury Demand
Stablecoins as a global buyer of U.S. Treasuries
Why this is a calculated bet by Treasury
48:30 – Bitcoin + Stablecoins = New Financial Rails
Why stablecoins alone aren’t enough
Bitcoin as the missing equity layer
50:30 – Bitcoin Mortgage Insurance (NEW)
Replacing PMI with Bitcoin-backed insurance
Building equity faster and reducing debt
56:30 – Housing Affordability Crisis
Why 50-year mortgages fail
Engineering better financial solutions
57:45 – Financial Literacy for the Next Generation
Education failures
Why young people must opt out of broken systems
01:05:00 – Where to Find CJ & People’s Reserve
Website, X (Twitter), newsletter
Closing thoughts on freedom and financial sovereignty
In this roundtable chat we discussed the passage of the GENIUS Act and how fully-regulated, 1-to-1 dollar-backed stablecoins will totally redefine how we move money. For the first time ever, consumers, businesses and family offices can now send and receive cash at the speed of the internet, as opposed to the speed of banks. Now that the GENIUS Act has been signed into law, the United States Treasury and OCC are tasked with drafting the rules that will shape the future of digital dollars. In this episode we disussed what to expect.
Moderator: Carlo D'Angelo, Stablecoin SolutionsPanelist: Caitlin Long, Custodia Bank Zack Shapiro, Rains LLPAnthony Bassili, Coinbase Asset Mngt. Rob Hadick, Dragon Fly John Wingate, Bank Social