TL;DR
Tether alone now owns extra US authorities debt than main nations like Germany, the UAE, and Australia — and so they’re not solely making the most of it, however driving blockchain adoption within the course of.
Full Story
these boring companies you hear about now and again that completely print cash?
E.g. Hunt Brothers Pizza — the gasoline station pizza enterprise that makes $540M a 12 months.
Yeah, effectively — stablecoins are kinda like that.
The main stablecoin, Tether, simply reported its earnings and have reeled in $5.2 billion of revenue to this point this 12 months.
(How? By taking a small proportion of the cash invested into their coin, and re-investing it to eek out a revenue — huge financial institution power).
Right here’s why that is vital, and prone to develop:
The US authorities generates money by promoting IOU’s (usually to different nations) with set rates of interest — and to those different nations, it’s a stable deal, trigger the US is seen in the identical gentle because the Lannisters (from Recreation of Thrones):
They at all times pay their money owed.
Drawback is…
There’s solely a lot US debt that different nation states can/are keen to purchase — and the US is perpetually hungry for contemporary money.
Stablecoins are the right instrument for extending demand for US debt — they enhance the attain of the US greenback by permitting customers wherever/in every single place to purchase US {dollars}, as a substitute of their (typically much less dependable) native currencies.
And this ain’t some hairbrained concept!
It’s already occurring in real-time. Tether alone now owns extra US authorities debt than main nations like Germany, the United Arab Emirates, and Australia.
(Shortly driving blockchain adoption within the course of).
We like to see it.
