Kashif Raza
Kashif Raza
BTC-0.68%
Central Banks must call for an urgent🚨 meeting as 🇺🇸 Senate has passed a stablecoin bill. 1 Stablecoin = $1 -Market cap $261 billion✅ -Transferable without permission✅ -Instant finality of settlement✅ -Censorship resistant ❌ What impact will it have on the world? 🧵1/
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The general population will swap local currency for stablecoin wherever high inflation occurs. Stablecoin coins are built and run on a decentralised public blockchain, and anyone with an internet connection and a crypto wallet can send and receive stablecoin. 10-12% of the world's population lives under double-digit inflation. There will be a very high organic demand for stablecoin as a store of value in more than 20 countries struggling with high inflation. 2/
Stablecoins need to be backed by US treasuries and other assets, such as Real estate, Gold, or Bitcoin. Over the last few decades, demand and trust in US treasuries were falling as countries like China were dumping U.S. treasuries. But as the stablecoin market grows, the demand for US treasuries will automatically increase to its all-time high. 3/
When demand for Treasuries is high, interest rates typically fall because investors are willing to accept lower returns for the safety of US government debt. This can signal strong confidence in the US economy or a flight to safety during global uncertainty. The Fed might see this as an opportunity to expand the money supply by lowering interest rates. 4/
This means that the USA will pump this extra money into its economy, and that will lead to a high level of: - Growth in the US - High employment - US Stock markets are rising - Positive sentiments - The US attracts more capital from the world. 5/
What does it mean for the world? - Stronger US Dollar - Expensive US exports - Impacting trade balances - High demand pulls capital toward the US - High demand allows the US to finance its debt at lower costs 6/
Stablecoin companies will replace: - Apple -Google - Microsoft - Tesla From their leadership position on the US stock exchange. The stablecoin companies combined will have a market cap of trillions of dollars. 7/
Stablecoin + DeFi will either replace or completely transform: - JP Morgan - Bank Of America - Goldman Sachs - Top 10 banks of the world. Stablecoin companies + DeFi protocols are going to be the new banks. Anyone from anywhere will start using decentralised banking! 8/
If you want to be on the friend list of USA🇺🇸: - Allow US stablecoin in your country. - Allow remittances in US-based stablecoin. - Make export-import payment in stablecoin. - Stablecoins will replace the SWIFT network; you should be okay with that. - USA will give AID in stablecoin - The USA will tokenise its stock market, and you can buy stocks with stablecoins - You can buy US Treasuries with stablecoins - You can buy US real estate in tokenised fractions through Stabecoin. Those who disagree with the terms above: - Are enemies. 9/
The USA will replace its USD in circulation with stablecoins. This will prompt other nations to launch their stablecoin backed by their local nations' currencies. Will it work? With nation: Yes (By law enforcement) Outside nation: No (No demand) There will be millions of stablecoins in the world, but USD-backed stablecoins will hold the Number one position. It is similar to what the US dollar is today! Despite so many currencies, the world's reserve currency is the US dollar. 10/
What is the ultimate plan of the USA? 1. Launch stablecoins 2. Spread them in the world by force and diplomacy 3. There will be a stablecoin war in the world 4. Let them fight Only that stablecoin will win, backed by a hard asset (Hard to create). 11/
To maintain its supremacy, a US-backed stablecoin will back its stablecoin with Bitcoin and gold; it already has that, which is 8,000 tonnes. The US will allow its stablecoin companies to back their stablecoins with Bitcoin. Through its strategic reserve asset bill, the US will accumulate 5-10% of the world's Bitcoin supply. 12/
The world will ultimately have two kinds of stablecoins: Backed by local currencies Backed by hard Assets (Hard to produce like Bitcoin and Gold). Most stablecoin companies will go with Bitcoin: - easy to verify - limited in number - no physical storage - censorship resistant 13/
Other nations should not join the rat race of stabecloins started by the USA. The race has only one winner: USA because of the dollar. Other countries should focus on accumulating Bitcoin. Faster than the USA. Buy more than the USA, aggressively and consistently. 14/
If a nation has bought more Bitcoin than the USA. They can build anything tomorrow: - Own Stabelcoin that will be at par with USA stablecoins (in competition) - The stablecoin backed by Bitcoin will be able to compete and have more demand globally. 15/
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