aren’t stablecoins also about emerging markets finding a way to hold on dollars as against their depreciating fiat? the play the industry is making already …
But isn't the demand for treasury is exponentially decreasing. While the US wants to borrow more.
And the faster the growth of stable coins the faster the other countries will try to dump it just look at China and UK. The risk shift from institution to holders. Decentralsing the risk.
Yeah, the pull for stablecoins should start from retail while insitutions were the ones parking funds in treasuries.
I don't think countries will dump Treasuries just because stables are growing. As long as dollar retains value, they will continue to hold as they want to keep exports competitive.
I mentioned the selling off of U.S. Treasuries by China, while Japan's holdings remain stable (as shown in a Bloomberg graph). If China is selling Treasuries and Japan isn’t purchasing more, who is buying them while the U.S. continues to print more? Additionally, India has also reduced its share of holdings.
The crypto market cannot afford another Terra moment.
This was a fantastic read 👏🏾
I learned alot here, well put together as always guys 🙌
Great recap on the evolution of this market up to the ICP narrative!
aren’t stablecoins also about emerging markets finding a way to hold on dollars as against their depreciating fiat? the play the industry is making already …
Yep. Retail from emerging markets are the ideal segment.
But isn't the demand for treasury is exponentially decreasing. While the US wants to borrow more.
And the faster the growth of stable coins the faster the other countries will try to dump it just look at China and UK. The risk shift from institution to holders. Decentralsing the risk.
Yeah, the pull for stablecoins should start from retail while insitutions were the ones parking funds in treasuries.
I don't think countries will dump Treasuries just because stables are growing. As long as dollar retains value, they will continue to hold as they want to keep exports competitive.
There are too many ifs.
I mentioned the selling off of U.S. Treasuries by China, while Japan's holdings remain stable (as shown in a Bloomberg graph). If China is selling Treasuries and Japan isn’t purchasing more, who is buying them while the U.S. continues to print more? Additionally, India has also reduced its share of holdings.
The crypto market cannot afford another Terra moment.