Stablecoins quietly the biggest attack ever on fractional reserve banking, and I’m here for it.
Discussion
Stablecoins are the digital reincarnation of fractional reserve banking.
I’m here for the mutual annihilation that’s gonna come out of it
Aren't there the court-stablecoins, though, that will further perpetuate fractional-reserve lending?
Interesting. How does that work?
Such a valid point it solves the transparency of anything that isnt 1:1 backed. A world without fractional lending is a sustainably prosperous one vs a gasoline fueled dumpster fire
lol sold your bitcoin buying shitcoins now?
How are they that??
moral analysis on the modern monetary system incoming in my book.
Fractional Reserve Banking is one of the monetary gnostic’s favorite spell
What are your thoughts on this? nostr:note10wc4c4gqrtf8a9enlzdepz3fsku2lxpp6xuz3z4fr5zjua5yt6mqkffu6a
It is scary if you think about a microtransaction driven internet that replaces current advertisement based model.
nostr:npub1mznweuxrjm423au6gjtlaxmhmjthvv69ru72t335ugyxtygkv3as8q6mak : „will provide the US with never seen before surveillance capabilities, providing real time access to financial transactions around the globe“
Yeah they wouldn't let that I Wyoming lady have her back that was going to have 100% dollar backed accounts with no fractions but they haven't been able to stop tether which is the same damn thing except even better
People seem to mean different things when they talk about the fractional reserve banking. What’s yours?
anything that is disruptive for central banking play is good for Bitcoin adoption
I fail to see how stablecoin adoption is an attack on fractional reserve banking. Can someone explain that one?
May be wrong but the way I see it is when a stable coin is minted the amount paid for the usdc or ucdt is moved to the treasury as a one to one backing. As more money moves out of tradfi into crypto rails ie stablecoins the more stablecoin dollars become more sounder than the tradfi equivalent dollar which is backed by only fractional reserves. Its a silent offramp out of a fractional reserve system in a sense as long as you hold the original usdc or usdt version.
Stablecoins quietly the biggest expansion ever of fractional reserve banking, and Lyn is here for it
Wait until Lutnick allows buying Treasuries with minted from thin air USDTs...
My understanding is that a stablecoin will hold 1 to 1 ratio of a currency to a token. Fractional reserve banking allows for commercial banks to create new money through loans where a bank can create debt up to 90%+.
Stablecoins do not hold 1 to 1. They invest the dollar into state treasuries.
Can you explain this Lyn? If you put a dollar in a bank it goes to state treasuries or to loans to businesses. If you put a dollar in a stable coin it goes to state treasuries . Both cases financing the somebody else debt