Manmohan Singh on the Role and Structure of Stablecoins and the Impact of Collateral in the Financial System
Macro Musings with David Beckworth
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Is the Demand for Stable Coins Going Up?
If stable coins rely on treasury bills, for example, those are treasury bills that won't be available to use as collateral and other settings. This raises a couple of questions for me. Number one, didn't we just increase the amount of treasuries by five trillion? I mean, why are we worried about collateral now? Meand theman o, public debt has grown dramatically. Soome yo, that question first. Now have another question to follow up, as i mentioned earlier, in the context when we compare to yourso we do not have the treasury market constrains to day. But if we get this correct, if stable coins generally come inside the rec perimeter, and
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