Tetragrammaton

Tetracketka

This is a big experiment that the Trump administration is making.

So they passed a bill, which Congress is all in place,

to make stable coins legal and regulated in a very particular way.

But stable coins are now totally mainstreamed in the U.S. financial system. What are stable coins?

It's a crypto asset backed by dollars.

So if I have a dollar in my pocket, say I pull out a dollar bill,

I can pass that dollar to someone,

or I can create a digital representation of that dollar

and trade the digital representation.

So stable coins are like the digital representations of dollars.

They are now in the process of becoming digital representations of dollars in the U.S. financial

system, and that is a major radical

change.

But it's still only a dollar.

In other words, unless there's a U.S. dollar backing the stable dollar coin, the stable dollar coin can't exist without the dollar behind it.

That's right. And the Trump bill, it's quite clear there has to be 100% reserves.

And if there's truly 100% reserves, the system should be stable.

Because for every digital representation, there's a dollar, or it can be a T-bill,

but a T-bill is as safe as you're going to get. So if you trust the regulators and you trust

the financial intermediaries to honor that commitment, it will indeed be fine for the U.S.

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