Arthur Hayes argues that there are serious risks for the financing of the increasing public debt in the United States of America, and the current bond market does not have enough recipients in the United States. Hayes says that the US Treasury Ministry plans to sell bonds about $ 5 trillion this year, but it will not be easy to keep 10 -year bond rates below 5 %. According to him, financial instability may be experienced if there is no new source of liquidity.
Bank stablecoins and possible liquidity effect
Hayes argues that the fixed valuable digital currencies (stablecoin) to be issued by banks can bring a huge amount of new liquidity to the bond market. He argues that traditional, non -bankrupt banks, which are unlikely to go bankrupt, export stablecoin and re -gain existing idle deposits to the economy. In this context, he argues that it is possible to re -evaluate a amount of $ 6.8 trillion with a bond.
According to my belief, TBTF banks will emerge about 6.8 trillion dollars in terms of T-Bill purchasing power thanks to the removal of stablecoin.
Hayes says that banks can re -use savings in the traditional system through fixed valuable digital currencies, and that this will provide great support to the bond market. Thanks to this mechanism, existing deposits can be transformed into stablecoin and directly directed to borrowing tools and new liquidity of trillions of dollars in the market may occur.
According to Hayes, the use of stablecoin may provide significant decreases in the compliance and operational costs of banks as well as providing a better experience to customers. In particular, it is claimed that the cost of approximately $ 20 billion can disappear and banks will have a more flexible structure to buy bonds.
Banks stand out rather than new fintech companies
Hayes argues that fixed valuable digital currencies will be used by banks with legislation regulations, and that the main purpose of this process is not only financial freedom or participation. According to him, the main factor behind these steps is the pump a large amount of liquidity in the system in order to support the bond market and thus capital markets.
The real stablecoin strategy is to provide a huge source of liquidity to large banks instead of venture companies and to ensure that it is done under the name of “innovation .. This is not financial freedom, but the finance of debts differently.
Hayes states that the state has given a new role to large banks on the basis of this process and that stablecoins can have a major refreshing effect in the bond market. In his own interpretation, he emphasizes that this is a step to increase liquidity rather than traditional idealist expectations.
Hayes also advised investors, rather than focusing on the initiative companies that export stablecoin Bitcoin $109,658.18It may be more advantageous to invest in shares of big banks or large banks. This view also reveals that the Stablecoin market can be dominated by traditional financial institutions in the future.
Among the different views on the subject, the effect of regulatory changes and possible market results come to the fore. Concerns about the public debt and the structure of the bond market in the United States can lead to changes in the financial strategies of domestic and foreign investors. In addition, the cost and liquidity advantages of stablecoins are closely monitored.
Considering the fragility of financial systems around the world and the increasing burden of debt of the USA, the potential impact on bank -supported stablecoin solutions is of great interest. Experts carefully evaluate the extent to which new stablecoin -based models will be functional in the bond market and whether they can maintain financial stability. The development of the law and the regulatory process stands out as a decisive element how banks will use this area. The effects of the integration between traditional and digital finance on liquidity will be monitored in the medium term, along with the decision -making processes.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
