That assumes that the stables are truly backed and the insiders aren't skimming and fractionally reserving.
Discussion
Well, it would be open on the ledger, so I'm not sure how they could skim? It's a stablecoin. Nobody is going to sell the country $1 stablecoins for less than $1. Circle isn't ever going to say hey, buy 20B worth of USDC for 15B. They are fully regulated and audited on the reserves as well.
And the amount of coins held would be public like all Treasury accounts and balances, debts, ledgers etc are.
I believe he just doesn't have a clue, personally. People likely want it because it is free branding and will get others to buy their BS. That's my guess.
Tether audits themselves to prove they are backed. Somehow they are still the gold standard.
Sure, I gave you $1 and you minted 1USDstable all clear on chain. Are you really keeping $1 in reserve or less?
Others have noted the public private spying relationship. Why CBDC when you can just have a private company do your dirty work spying on every transaction?
USDC is not tether. They are already fully backed and held reserved and OFAC compliant.
And Yes, if you are holding the liability side of the government asset, you absolutely would be required to keep it backed fully. No question.
We are talking about the reserve, keeping a stockpile, not cdbc or private alternatives.
You have great faith. I don't believe there will be airtight rules. I don't believe there will be competent regulators. I think those gaps are by design to line the pockets of their friends.
Perhaps you are right. I will say though that everything we complain about in banking is not due to crimes being committed, rather they are doing things explicitly allowed under laws and inost cases encouraged and required for fiat to continue.
We shall see though.