Byzantine on Nostr: explaining this further. new federal reserve notes are backed by nothing but issuance ...

explaining this further.

new federal reserve notes are backed by nothing but issuance is dependent on the FED and they may not cooperate

a treasury bill backed stable coin that circulates feeling like tether can have its interest rates for stable coin loans set by the market and supply dictated by demand of the market

treasury can issue as many treasury bills as the market makers of the usd stable coin can absorb

the treasury becomes directly in control of the interest rates of its treasuries and and can mandate low interest rate payments to stable coin issuers who just collect interest.

banks keep the stable coins for depositors so they can issue loans and use the stable coins as "reserves" rather than fed bank reserves.

the US gov doesn't need to abolish the FED and can instead make it irrelevant

also they get to directly export inflation worldwide via their treasury bills which back the stable coins and have full visibility into capital flows

this also eliminates the euro dollar system by replacing it with a stable coin based system

then many counties ban stable coins, then they fight the US and eventually we get to hyperbitcoinization