For everyone looking forward to the US CBDC to destroy bitcoin and cryptos

Discussion in 'Crypto Assets' started by johnarb, Sep 19, 2021.

  1. ph1l

    ph1l

    At 16:44 in the video, he says
    Doesn't the market cap in stable coins come mainly from exchanging from a different cryptocurrency into the stable coin (with the stable coin issuer then creating new stable coins) and not from transfers from bank accounts?
     
    #11     Oct 13, 2021
    johnarb likes this.
  2. johnarb

    johnarb

    In order to increase the supply of stablecoins, a deposit of fiat currency is needed

    For example, if an institution wanted $100M USDT coins and has a relationship with Tether, they would wire them the $100M (plus fees) and Tether will mint 100M USDT coins and send to the customer's wallet address

    To redeem the $100M in fiat currency, the same institution would request it from Tether and Tether would wire the money (fees settled per their agreement) and Tether will burn the 100M USDT (remove) from supply

    Not everyone can do either one of the two above. Must be AML/KYC and contracts certified by Tether

    Anyway, that first step, wiring $100M fiat currency to Tether means it was drained from a bank account somewhere. The balance of $100M was removed from the traditional banking system deposits

    Hardly anyone redeems USDT for fiat currency, hence the increasing supply and market cap of USDT. Same goes for other stablecoins like USDC, GUSD, PAXOS, and so on
     
    Last edited: Oct 13, 2021
    #12     Oct 13, 2021
    ph1l likes this.
  3. Are there any concrete plans for a US CBDC?
     
    #13     Oct 15, 2021
  4. johnarb

    johnarb

    I have not seen any, but there are rumors and statements made
     
    #14     Oct 15, 2021
  5. What is interesting to me is that the EU already has plans for a digital Euro, China has almost implemented a digital Yuan, but there are no concrete plans for a digital dollar. Does anyone have any theories as to why?
     
    #15     Oct 18, 2021
  6. Ed48

    Ed48

    Perhaps they're considering just using Bitcoin. :D
     
    #16     Oct 18, 2021
  7. Joking aside, that would be fascinating if it ever happens.
     
    #17     Oct 19, 2021