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59 sats \ 1 reply \ @byzantine OP 22 Mar \ parent \ on: The US Dollar is a private currency econ
yea tether is another private entity that competes with the fed.
it does everything that the Fed does by creating money as a way to scale US debt. The only thing it doesn't do is have the authority to set interest rates within a set of private banking institutions.
also, the notes that tether issues are not redeemable for payment of US taxes
but both institutions tether and the US Federal reserve are essentially an issuer of private currency that scales some other underlying layer
it does everything that the Fed does by creating money as a way to scale US debt. The only thing it doesn't do is have the authority to set interest rates within a set of private banking institutions.
Yes. The next step in stablecoin wars are going to be interest payments. This will radically radically reshape the global currency market.
- Tether buys $100M in US Treasuries
- Treasuries pay tether 4.5% interest
- Tether pays 2% interest to USDT holders and keeps 2.5% for operating income
- USDT holder gets 2% interest automatically in wallet in monthly/daily increments
This will destroy most other national currencies.
- Hyper-dollarization
- Hyper-bitcoinization
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