Juraj on Nostr: Thank you! Yes, this is important. But I think to bring it back, FED has still a ...

Thank you!

Yes, this is important. But I think to bring it back, FED has still a tremendous influence over the eurodollar system in setting the interest rates. It's been even saving the eurodollar system recently by providing swap lines. So it's definitely not disconnected, although the impact is huge.

For those who don't understand what an eurodollar is, a good example is DAI (collateralized stablecoin). It's created as a dollar denominated loan, which makes it an eurodollar on different payment rails. A decentralized software creating dollars of chain.

But the thing is - the interest rates have to mirror Fed's to some extent. The difference in rates is just a reflection of friction to arbitrage.