What if the bag of paper "money" is in a foreign currency? You'd still happily call it money, but then the distinctions you're trying to draw with crypto don't really apply. Think of crypto as a foreign currency, it still functions as money.
Comparing crypto to actual currency typically connected to large, real economies is not relevant here.
A country like Iceland is far smaller, and their currency famously fluctuated in 2008. Would you consider Icelandic króna as money? Most people do.
Anyway, that and your question are hardly relevant to the fact that Binance and their cabal own the crypto exchanges and consequently could manipulate the price to reduce the size of their obligation denominated in crypto rather than currency or stable coins.
I understand Binance alone accounts for a third of the market, and their ability to coordinate with other exchanges is hardly restricted to the participants we know were in that specific group chat.
I think the point stands that a liability in eg. USD is much different from one denominated in crypto.
Yeah Binance itself is big but it'll take a lot more than one exchange, an exchange everyone is now handling with extra suspicion, to cause a crash.
> I think the point stands that a liability in eg. USD is much different from one denominated in crypto.
If course it's different but that's so much weaker of a point. And the foreign currency comparisons weren't to particularly stable currencies.
Binance obviously has influence on crypto prices, potentially affecting a liability denominated in crypto.
And I'm sure they have nonzero influence but anything significant needs more evidence than a signal call that has Kraken in it.