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  • you know, you talk about stable coins and, and you get the yields, we're talking right now and it's great to look at a stable coin because it's very easy to compare that to a dollar, say deposited in your account and you know through the course of 10 years of London real, I happen to have some conversations encrypted over the years.

  • I had Max Keiser here screaming in my studio in 2013 talking about Bitcoin, We were both complaining, there was no liquidity on, you know the quote unquote exchanges back then.

  • I had Andrea since Annapolis here in 2015, 2019 talking about the future of money, but we didn't see it yet Alex and yet when I took a peek back into this market this year and I saw stable coins, I said, wow, that's just an incredible invention that changes the game and maybe you could talk a little bit about the stable coin itself.

  • Um, some people call it the gateway drug now into the crypto space.

  • My mother who is 76 years old, who lives in san Diego California who owns about 30 to 40 apartment units.

  • That's how she survives.

  • I sent her some stable coin the other night.

  • I first center, some ethereum she got on the metal basketball and then I sent her some some stable coin and she said, so it's like a dollar, wow, that's really neat and she got it even though she's 76 probably low tech.

  • So tell me about this stable coin?

  • Is this going to change the whole game?

  • Has it already changed the game?

  • Um What are your thoughts?

  • Yeah.

  • So look stable coins around now for five or six years.

  • It's not really something that was invented yesterday.

  • And and again it's a token that represents real dollar stored by a custodian.

  • So, so if the issue is a cert issuer is circle or uh you know Paksas or one of the trust companies, most of these are trust companies, they hold an actual dollar and they issue a token on the ethereum network or some other network that represents that value.

  • And then uh participants in the market can basically uh borrow it or sell it to each other or move it around to make payments or commercial activity and so on, so on.

  • And in a way that is operating much more efficiently and like I said, with much higher velocity, Then our banking system that now requires you to fill up 15 forms every time you want to use an ATM or whatever.

  • So, so I think the that friction is really what's slowing down our GDP, that friction is slowing down creativity.

  • It's slowing down the average person having access or equal access to this amazing economy that we have.

  • Right?

  • So, so I think it's not just about representing the dollar, it's representing economic activity that had been stifled and now the opportunities open worldwide, right?

  • It doesn't matter if you're in Vietnam or the Philippines or in Africa or or in europe, you can basically transact or interact with anybody in the world on the Blockchain without the traditional restrictions uh, that we have.

  • And, and so basically there were two waves of innovation, right?

  • One was store value in Bitcoin.

  • Obviously kind of uh uh situation that came model creates this amazing system that allows us to store value on on the inner computer network on the internet solves a problem that scientists have been dealing with for 70 years, right?

  • Have not been able to solve.

  • I worked on that as well in 2003, 2000 and four.

  • Couldn't solve it.

  • Right?

  • So this is not a little thing, It's a huge thing.

  • And then the second wave is this yield wave, right?

  • So because yields are going down to zero around the world, you can, if you can have single digit uh yield all the money in the world is going to migrate from the traditional system to the, to this new system.

  • And that's what really a lot of participants are worried about.

  • Every country is thinking, wait a second.

  • What happens if I print money but no one wants it?

  • What happens if everybody migrated to these stable coins or to CBD CS?

  • And I have no more power.

  • I don't have any control over my people and that's why you're seeing the crackdown in china, that's why you're seeing people issuing very strict rules or countries issuing very strict rules because they're basically saying, I don't care about all this creativity.

  • I don't want another renaissance.

  • I just want to keep control.

  • I want my banks to be in control.

  • Is money the single best way a government can control people even more so than even laws or legislation or enforcement?

  • I mean is money the thing that really can control behavior?

  • Well, we will see because this experiment is actually going right now.

  • In real time in china, 10% of the population in china already has access to the did show you on and people have to understand it's not just control of issuing money.

  • Uh the chinese government can put money inside your phone, inside your wallet.

  • But tell you this could only be used uh to buy medicine or to buy groceries or two.

  • If you gamble, if you take a vacation and you spend this money on travel, we will withdraw that money out of your account.

  • So, so it comes with tremendous amount of restrictions.

  • Obviously, full visibility.

  • The government can see everything you're doing no privacy.

  • And the question is do we want that kind of currency to be exported worldwide?

  • Because I'm seeing country by country trying to copy the chinese model versus the american model where we enable innovation.

  • We enable competition right right now there's about 1000 stable coins competing with each other.

  • So do we want that or do we want centralized the communist control platform that tells us what to do every day?

you know, you talk about stable coins and, and you get the yields, we're talking right now and it's great to look at a stable coin because it's very easy to compare that to a dollar, say deposited in your account and you know through the course of 10 years of London real, I happen to have some conversations encrypted over the years.

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A2 stable coin dollar slowing china model

Does China use digital currency to impose restrictions? Alex Mashinsky of Celsius

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    林宜悉 posted on 2021/10/17
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