Stablecoins as demand deposits
from Critical Thinking Brain Hosted by critical_thinking_brain
Stablecoins effectively cause inflation Stablecoin issuers create usdc or usdt for an asset and this asset backs the newly created stablecoin product Stablecoin issuers can take dollars in for every issued stablecoin or they can take an asset on the books, just like the Federal Reserve that buys a treasury bond Time deposits vs demand deposits Stablecoins aren't creating dollars since they aren't dollars Stablecoins benefit from secondary trading market If you want crypto to go up increase the amount of stablecoins Stablecoins allow for connected people to benefit at expense of others Stablecoins might be a legal way to create illusionary inflation outside banking
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