...fleecing the poor worldwide...stablecoins don't change much in this
Just Devil's Advocate, but isn't that a reason not to use stablecoins? I mean, I can participate in the fleecing of the poor without changing anything at all apparently.
Just Devil's Advocate, but isn't that a reason not to use stablecoins? I mean, I can participate in the fleecing of the poor without changing anything at all apparently.
By swapping the volatility from crypto to lower USD volatility, they effectively create a funnel from riskier currencies into dollars.
Which is the same state that previously existed... except now facilitated by the crypto industry's global accessibility/UX and with less international regulation.
Blessing USD stablecoins at the US federal level was a smart move (from the US-perspective) as it creates a much bigger demand for dollars, and if the US didn't do it then China or OPEC would have eventually gotten around to it as an end-run around dollar hegemony.
Winners:
- Crypto industry (more volume to skim)
- US Treasury (more demand for debt)
- Countries with less-stable currencies (lose further control of monetary policy)
- China / OPEC (miss opportunity to push dedollarization further)
- Money laundering (once volume grows, KYC and traceability will follow)sure, it couldn't happen without the local warlords, but still...
I don't know what the effect is called, but suddenly some unrest in some country or inflation in another calls for creating a whole new money system. It seems unreasonable and I'm a bit suspicious of where it comes from.
IIRC in hindsight at the beginning of 2024 the best was to exchange all your saved dollars to pesos, invest them in bonds or the bank, and exchange them for dollars at the end of the year. Probably you can get a 20% yoy increase. But there was a risk or many unexpected problems that would let you with a lot of monopoly money that is worth only a 50% of the initial value... So the safe option was to keep your savings in dollars.
Euros are another safe option. Pounds are very difficult to exchange. The money of nearby countries is sometimes better, but they may have unexpected surprises too.
> I don't know what the effect is called, but suddenly some unrest in some country or inflation in another calls for creating a whole new money system. It seems unreasonable and I'm a bit suspicious of where it comes from.
I agree.