Are they? Or are they going to let the banks print a shitload of stablecoins? Maybe there isn't a difference.
“The government can’t print Bitcoin and the government can print dollars and their gonna print a shitload of dollars.”
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Discussion
You are right technically it is the banks but their willingness to back stop the banks enables it so it is kind of both.
?
There is a huge difference. One comes from peoples savings, one comes from the fed.
However, the savings and investments of people into Stablecoins is going to be nowhere near the level of the fed. In March - June, the fed printed 2.2 trillion.
Likely Stablecoins will take a decade or more to reach that level.
Banks will be buying treasuries for the stablecoins issuing. Just another way for the gov to stimulate tbills and note markets without the fed.
But it can only last so long, eventually there is nowhere near the money in the system needed at lower rates to continue. Enter the fed.
Bankers will loan stable coins into existence just like they do now with checking accounts
That's not what tether does
They will create Stablecoins into existence, and buy treasuries as collateral against peoples savings they deposit. This is exactly what tether does. The only difference is tether also buys Bitcoin and whatever else.
They buy Bitcoin with the profits off of the t-bill interest profits so their Bitcoin is really like kind of free which is a beautiful thing of course
I don't believe the genius act allows for that. Short term us debt only for acting as collateral.
Tether is an El Salvador company
So? What is with your fascination with tether? Tether will be regulated now in the US like any other.
We are talking about the stablecoins being issued in the US having to buy and hold treasuries when they mint Stablecoins.
I'm not sure anymore what your point is. Have a great day
There's no difference whether dollars are printed by Chase bank or the Fed
At least not wrt the inflation impact