one thing with these stablecoins is they're pushing to buying of 'us-debt'.

congrats if you buy a stablecoin - you've effectively financed the US gvt at 0%.

now the US gvt can inflate away that debt at 0 cost to them, and pass on the cost to you.

that's why a bunch of these stablecoin companies are pushing it as a way to save for people in distressed economies.

what a way to steal from the poor.

that's why the crypto act was called GENIUS act.

That's not how any of this works. You may not receive any interest on your stablecoin balance, but the issuer certainly does. Why would they offer to lend money to the US government at zero when they can get the market rate and pocket it? What's more, these are mostly short-term instruments This means any increase in inflation will be reflected in their yield.

It’s actually more of a win-win situation if you look closely.

Stablecoin issuers earn yield from holding U.S. Treasuries, which sustains their business model. Meanwhile, people in distressed economies get practical access to a digital dollar, often cheaper and faster than navigating restrictive exchange rules or paying steep conversion fees at money-changers. That’s meaningful when local currencies are unstable or losing value.

Of course, not all stablecoin issuers are trustworthy, and some governments under economic distress may ban or limit these instruments. But when the setup works, both sides benefit.

> congrats if you buy a stablecoin - you've effectively financed the US gvt at 0%.

USDC on Coinbase yields interest. The USDC people make a little spread on it, but you aren't financing the US government at 0%, you're financing them at market rates. There is counterparty risk just like with a bank. Unlike a bank, there are liquid markets onchain for other fungibles.

US govt is financed at whatever rate the stable-coin issuer finances at, which is likely a mixture of T-bills, fed overnight interest rates (via bank accounts), and other assets.

didn't you just explain the USD game? (fleecing the poor worldwide through inflation...) stablecoins don't change much in this.

> congrats if you buy a stablecoin - you've effectively financed the US gvt at 0%.

As MMT teaches us, a government that issues its own currency does not need to borrow to finance itself, as it can create the money it needs, though it may still issue debt for other reasons.

The total stablecoin marketcap is not that high relative to US debt, and open question whether they're actually buying all the treasuries they claim. Tether has never been audited.

Stable coins can print anytime they want, there's no one at the SEC that will regulate it in this admin. As a matter of fact it's pretty well accepted in some circles, especially on subreddits, that Tether did exactly that, printed usdt, purchased btc at effectively 0 cost basis, inflating bitcoin prices by decreasing supply and then turned around and purchased treasuries. Cantor Fitzgerald ran that for them.

Further, stable coins / crypto are almost certainly being used to slop up as much liquidity as possible and has essentially so far pulled 4 trillion out of circulation. If not for that sleight of hand trick, hyperinflation, at least in the USA, would have already happened. Probably still will as there's only so much can kicking that can occur. I know of 30 year olds that literally live in mom's basement and dump nearly all of their just above minimum wage checks straight into Robinhood to blindly purchase crypto. Will forever beat inflation is the mentality.

Sure looks like there's going to be lots of pain for poor and middle class people in the next 5 years.