Oddbean new post about login | logout Could Tether bring stability to Treasury markets? What if the Treasury issued bonds backed partially by bitcoin while also building a bitcoin stockpile to pay back debt over the long run? This is what a multi-decade soft landing would look like to me. https://www.tftc.io/tether-treasuries/
Maybe, but buying up Bitcoin in the short term using the fiat that caused all the problems is still going to lead to other problems in the short and long term. You can't have it all. Someone is going to get burned, and I imagine it will be the usual suspects (probably not the types of people involved in markets).
Tether is a shitcoin.. it’s basically a digital dollar. Why should bitcoin be used to support this?
I see how US gov. will use stablecoins (future CBDC’s) for creating demand for its short duration T-bills all across the globe. But that’s not the main issue in the treasury market. The main issue is to create the demand for long duration T- bills. If tether becomes the forced buyer of long duration T- bills then it is in the path of becoming the new central bank in digital space.
No long run #bitcoinonly
Tether brings everything but no security or stability. How often do you have to carry out the trust me broh exercise? 😅
When I was reading this my first thought is could the Treasury do a rug pull on Tether as a way to wipe away debt? It always seemed like there would be serious side effects up to and possibly including war if we defaulted on treasuries held by other sovereigns. But that risk is not there if it is held by a private enterprise. Or am I missing something?
