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192 - Cryptodollars Are the New Eurodollars with Nic Carter
Bankless
The Fed's Decision to Backstop the Euro Dollar
The Federal Reserve decided to backstop the euro dollar due to events like the Nixon shock and the oil shock, which created a huge demand for euro dollars in the market. The concept of euro dollars, or global dollars, emerged, with trillions of dollars circulating globally, including an unknown amount in physical cash. The lack of precise data on the supply of dollars is contrasted with the transparency of blockchain technology. The demand for dollars stems from their use in US tax liabilities, purchasing securities, and the network effects of trade. The network effect and liquidity benefits have made the dollar highly sought after globally, even in the realm of stablecoins. The durability of this demand and the potential impact of crypto dollars on the dollar's dominance in the future are key considerations.
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