From a libertarian perspective.
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95 sats \ 1 reply \ @SwapMarket 10 Nov
This will cannibalize commercial banks that originate business loans to keep to economy going. With no one able to assess credit risk only state owned or guaranteed businesses will get financed. Loans backed by bitcoins is just margin trading, have no economic benefit. We are heading for a centralized dystopia.
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0 sats \ 0 replies \ @siggy47 OP 10 Nov
I fear you're right, but I'm always a pessimist
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117 sats \ 1 reply \ @freetx 10 Nov
I know the mention of stablecoins triggers many, but aside the fiat nature of them for a moment: The most surprising thing to me is how we are going back to full-reserve banking.
Its not something I ever would've predicted 5 years ago, and the partial end of the "fractional reserve" system is itself a good thing. Of course fiat = trash money, but we are taking "trash money times 100" down to just "trash money" by removing the excessive fractional nature.
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18 sats \ 0 replies \ @fiatbad 10 Nov
Well said.
Sounds kinda bearish for Bitcoin, when you put it that way.
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46 sats \ 1 reply \ @DEADBEEF 10 Nov
It will be very interesting to see where this stablecoin gambit leads. I remember hearing interesting theories about it back in August on the No Agenda Show Podcast.
Arthur Hayes Explains Stablecoins under Bessent -1- Euro Dollar needs to go away.mp3
Arthur Hayes Explains Stablecoins under Bessent -2- Stablecoins and Treasuries will neuter the Fed.mp3
Arthur Hayes Explains Stablecoins under Bessent -3- Enter The Social Media Companies.mp3
Arthur Hayes Explains Stablecoins under Bessent -4- Now Bessent has control over the elites and the FEd.mp3
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63 sats \ 0 replies \ @freetx 10 Nov
Haven't listened to it yet (NA is a great podcast tho), but to me it seems like the Fed neutered itself.
This current situation is the result of "getting too much of what you want". The Fed (ie. the holding company for the banks) is the one who has relentlessly pushed to lower reserve requirements for banks. It was Covid where they finally went full-tilt and removed any reserve requirements from banks at all...that is banks are no longer mandated to hold any treasuries as reserves.
Well congratulations....only now the US Gov has zero reasons to support you anymore. This is what broke the Fed / US Treasury relationship. The banks are no longer big buyers of US debt...so the US Gov has just legislated itself a new buyer.
Growth projections post-GENIUS act estimate by 2030 stablecoins will hold 1.5-2T in US treasuries. They are set to become the top 2 or 3 holders of debt...and the US Treasuries new best best buddy.
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