Paul Ryan on Stablecoins. This makes sense.
https://twitter.com/i/status/1790540747466223921At this time the US is concerned that many bond auctions are not going well, i.e. people are not buying US treasuries. Many countries like China are selling, Japan wants to sell, and others are worried about holding, because the US govt can confiscate them. Yet the more money we print (which is necessary to pay off our debt in cheaper dollars), the more the value of the $ declines and people want to buy less US $/treasuries.
The USDT (Tether) stable coin is most popular because it is backed by US Treasuries, and that has been audited. USDT can be printed at will, but the twist here is that they buy an equal number of US Treasuries. tether has now become one of the very large holders of US treasuries (i.e. a new demand source), it is international and not a US company. 1 USDT=1 US$, this makes it very useful for purchasing crypto, particularly outside the US as the exchange risk of the $ declining in local currency is no longer there. USDT can also be moved across crypto exchanges very easily, while the $ is cumbersome with reporting requirements and delays.
Paul Ryan is pointing out a new demand source worth Trillions, who will buy US Treasuries, there are other stable coins too, some from the US (less popular). this solves the immediate problem of the US finding buyers of Treasuries. I think this is a great source of new demand, but ultimately the US will overprint and no one will buy USDT! either. At that time, the US will be ready to move to a Bitcoin Standard, which cannot be overprinted. I think things are moving along well.