Quote:
Originally Posted by CoachKandSportsguy
Trying to galvanize support by creating a fictitious enemy? No matter your arguments, I am not buying it as a better answer for the US economy.
For all stablecoins authorized in the US, it must be backed by US Treasury offering. Why? Because the BBB (big beautiful bill) just authorized a ginormous spending increase while the demand for US Treasury offerings are declining.
So the stable coin scheme is a way to finance the US treasury ever increasing need for debt financing. ie, a savings account for US Treasury with no interest, for the luxury of digital spending? A digital coin based upon US Treasury's buying is still belief in "fiat" currency. . as the relationship is still 1 to 1 and requires backing of the US Dollar with treasury instruments.
What the Genius act pushers are selling without acknowledging the potential, is that there can be a US stable coin buyers strike, or liquidation, for currently unknown reasons, but most likely it will be the same reason, lack of adequate security reasons which may result in coin theft in large proportions, wreaking havoc on the demand for digital coins. .
If the US dollar continues to fall, then wanting US stable coins by foreigners will be in decline, no different than Zimbabwe stable coins, when Zimbabwe currency was falling into banana republic levels. . .
It's a government gamble on grifting the rest of the world into buying US treasuries to maintain the US huge debt growth. If the US debt and expected growth and tax reductions doesn't produce the economic results expected, and so far, the past historical attempts haven't produced the results expected, the "poof" of digital coins might be US Dollar threatening for the US treasury and the US Dollar, upon which the US stable coins are based. .
Turkey tried the populist very low interest rate strategy and the lira lost a very large percentage of value, relative to other economies. . so be careful for what you wish for in a quick fix solution. . .
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All global commodities are priced in USD.
What other fiat can take the place of USD?
The value is to bypass costly foreign exchange/delays and local currency theft for those outside USA.
This will strengthen dollar demand globally.
"Galvanize Support" "Fictitious Enemy"...Wut? All fiat is a criminal Ponzi and debt is it's very nature...It is loaned into existence at interest. The City of London/BoE is a criminal fiat mafia and has been stealing from everyone for 400 year. I Don't care about anyone's "Support".
USDT has 400M users...They must be fools.