Tether is only 3% backed by cash per Tether. The rest of the backing is unknown. USDC attests to having approved investments backing them but no official audit has been done. Maybe this is why regulation is coming? I suspect Bitcoin price will go down on when regulation arrives.
The price of BTC goes up and down with every piece of FUD or FOMO published regardless of whether the news is grounded in fact or not. What specific regulations are you expecting?
Stablecoins should have be audited if they claim to be backed by reserves. None of the stablecoins have provided a recent audit. Seems suspicious to not want to be audited and prove that your stablecoin is legit.
That's one of the regulations you're expecting? Fair enough, banks and other institutions do need clarity around the risks involved before they can pile in to the market. In the event that Circle and Tether et al are audited as part of a new regulatory framework, if the audits agree with the existing published independent accountant's reports then it would likely push the price of crypto assets higher. Of course, if the audits find that Tether and Circle have been fraudulent, then it would have a negative impact on the market until the issue is resolved. Any other specific regulations? Cross border transactions is an interesting one. Particularly as it relates to the USD. Any comment on that?
No. That is my only requirement. Any cross-border transaction will be monitored somehow by somebody in order to catch tax dodgers.
The use of USD denominated stablecoins for cross border transactions poses a perceived* threat to USD dominance in the world. This is what Powell is most concerned with. *edited
The only bearing that debt has on USD dominance is that as long as the US government bonds are in demand then the USD will always remain in demand. Debt itself is not an issue. https://www.spglobal.com/marketinte...ment-debt-market-even-as-yields-fall-65113750
Per your chart the US bonds are being monetized by the Fed. It wouldn't take much for foreign countries to dump US debt like Russia already has.
I would say dumping US debt is an act of financial aggression, and would never be comtemplated by US allies. Russia has done so, but they aren't allies, and China dumping would be an act of war. I think China, instead, just don't roll over their US debt, but I could be mistaken
Remittances from The Fed to Treasury fall far short of the debt issued. Russia's holdings were pretty small compared to worldwide standards, the sale made no difference at all to the bond market. The same would apply to most countries if for some strange reason they decided to sell their US Treasury bonds. Now if China or Japan tried it, it would create an avalanche of ever lower prices, that's if they could find enough buyers, the end result being that these countries would carry huge losses.
So what's your point? Or are you just repeating yourself again? Or I'll put it another way - how does this add to the discussion?
This is from today. It adds to the discussion because they did not answer the questions on the interview. They said any audit would be months away. Do you defend their answers?
I’m happy with their answers: 1. the market obviously trusts them because it’s the 3rd biggest crypto, and 2. like a gazillion other private companies they have a policy of privacy around their commercial partnerships
If they are the third largest crypto because of fraud then that is a problem. They claim they are for transparency but it does not appear so by their actions. To claim privacy to escape an audit is suspicious.
Which is why they said the market has spoken and obviously trusts them otherwise they wouldn’t have grown to become the 3rd largest crypto. Not transparent enough for you and other critics. Plenty transparent for the holders of the $62 odd billion on the market.
How can the market make a proper decision without a true accounting of their reserves. Do you think the investors in Enron and Madoff's fund knew what they were getting into before the truth came out?
