So I see this helping people in foreign countries be able to more readily have access to USD through stable coins and I see this benefiting the US Governments need to issue more debt to finance all the things the government wants to spend money on but I don’t see how this will help the average American or Westerner. Maybe I am missing something but it seems like just another way to keep the status quo going for a few more years.
Today if a developing country farmer wanted dollars, they could get a restricted bank account that limits how much dollars they can buy
With Stablecoins, the idea is that nations with capital controls will now find it really hard to enforce them
If your citizens have an internet connection, then they can circumvent any national capital controls to buy US dollars (or other national currencies)
US dollar benefits from more worldwide access and ubiquity while countries with weak national currencies and high capital controls become more beholden to US financial system
isn't enough for such countries to ban Crypo providers and block their IP addresses and if there are already capital controls in place, how do you think they will buy the Crypo ?
Yes they can do that but it will be hard. Countries will act slowly and with poor execution. And they will be acting against the wishes of the population and the US will pressure as well to keep access to crypto open.
I think many countries might not see what’s happening early on as well.
Great info as usual 👏
So I see this helping people in foreign countries be able to more readily have access to USD through stable coins and I see this benefiting the US Governments need to issue more debt to finance all the things the government wants to spend money on but I don’t see how this will help the average American or Westerner. Maybe I am missing something but it seems like just another way to keep the status quo going for a few more years.
The benefits for America is just that, ya, maintaining status quo of strong dollar, low interest rates
So Americans can continue to print dollars and maintain the “exorbitant privilege” of a world reserve currency. World consumers fueled by cheap debt.
But also, US now has one more presumably powerful way to financially pressure weak national currency nations.
What does this look like once integrated? Does it mean that all US companies need to accept crypto? Or is it more like legalizing it as an asset
Also are they just planning to integrate USD stable coins? Seems like an easy win if you trade the right crypto
Today if a developing country farmer wanted dollars, they could get a restricted bank account that limits how much dollars they can buy
With Stablecoins, the idea is that nations with capital controls will now find it really hard to enforce them
If your citizens have an internet connection, then they can circumvent any national capital controls to buy US dollars (or other national currencies)
US dollar benefits from more worldwide access and ubiquity while countries with weak national currencies and high capital controls become more beholden to US financial system
To start, it’s a pitch to the masses of the rest of the world: “if you have an internet connection, you can buy the US Dollar”
Along the way, yup we shall see Stablecoins integrated to the operations of many companies in the US and worldwide.
isn't enough for such countries to ban Crypo providers and block their IP addresses and if there are already capital controls in place, how do you think they will buy the Crypo ?
Yes they can do that but it will be hard. Countries will act slowly and with poor execution. And they will be acting against the wishes of the population and the US will pressure as well to keep access to crypto open.
I think many countries might not see what’s happening early on as well.