Currency deposits versus stable currencies: the financial future is not a substitute, but a combination
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Banks create currency and stabilize currency flows. We need both。
The proponents of the token deposit said“Stable currency is an unregulated shadow bank. Once the bank's bank deposits are coined, the ownerThey'll be more inclined to choose the bankI don't know
Some banks and central banks like this。
“Banks are dinosaurs. We don't need them on the chain. Stability is the future of money.”
This narrative is particularly popular with the Encoded Currency First Nations。
Both sides had the wrong focus。
Bank asIts biggest customerFamilies provide cheaper credit
You deposit $100, and it turns into $90 more. This is how some reserve banks operate. It has been an engine of economic growth for centuries。
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Fortune 500 strong firms store $500 million at Morgan Chase。
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In return, they received large lines of credit at interest rates below market levels。
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Deposits are the business model of banks, and large businesses know that。
Currencyized deposits move the mechanism to the chain, but they serve only the bank ' s own clients. You're still in the bankRegulatory scopeBank hours, processes and compliance requirements remain subject。
YeahThoseFor enterprises requiring low-cost credit lines, monetized deposits are a good option。
Stabilized coins are like cash
Circle and Tether holds 100 per cent of reserves, equivalent to $20 billion in bonds. They get a 4-5% return, but they won't pay you anything。
In return, you receive funds that are not subject to any banking supervision. It is expected that, by 2025, $9 trillion will have been transferred across borders through stable currencies. As long as Internet connections are available, they can be used anywhere, without any permission, 24 hours a day。
THERE IS NO NEED TO ASK THE CORRESPONDENT BANK, NO NEED TO WAIT FOR SWIFT TO BE LIQUIDATED, AND NO NEED TO WAIT FOR “WE WILL REPLY TO YOU WITHIN 3-5 WORKING DAYS”。
Stabilized currency is a good option for companies that have to pay their Argentine suppliers at 11 p.m. Saturday night。
The future is both
A company that wants a good line of credit from a bank and may also want to use a stable currencyAccess to long-term marketsI don't know。
Imagine this:
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A wealth 500 strong company holds token deposits at Morgan Chase
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In return, it received a concessionary credit line for United States operations
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It needs to pay an Argentine supplier that prefers stable currency。
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SO IT CONVERTS JPMD INTO USDC。
This is an example of our future direction。
The chain. Atomic class。
Both。
Traditional channels are used where applicable。
Use stabilization currency where it is not applicable。
This is not a matter of selectivity, but of balance。
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Currencyized deposits• Low-cost credit in the banking system
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Stable currency• Cash-like settlements outside the banking system
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Chain exchangeImmediate conversion, zero settlement risk
BothPros and cons。
They will coexist。
PAY ON THE CHAIN > TO PAY FOR THE ORGANIZATION OF API
SOME BIG BANKS MIGHT SAY, "WE DON'T NEED TOKEN DEPOSITS, WE HAVE API," AND IN SOME CASES THEY SAY RIGHTIndeed。
This is the advantage of chain finance。
Smart contractCrossBetween multiple enterprises and individualsBuild LogicI don't know。When the supplier's deposits are paidTimeSmart contracts can automatically trigger inventory financing, operating capital financing, exchange rate hedges。Whether banks or non-banking institutions can do this automatically and instantaneouslyI don't know。
Deposit poignant currency poignant payment invoice poignant downstream payment completed。
API IS RIGHT, AND SMART CONTRACTS ARE MULTIPLE. THIS MAKES THEM WELL SUITED TO WORK PROCESSES ACROSS ORGANIZATIONAL BOUNDARIES. THAT IS THE STRENGTH OF THE CHAIN OF FINANCE。
This is a distinct financial services architecture。
The future belongs to the chain
The issue of low-cost credit was addressed by tokenized deposits. Deposits are locked. The bank mortgages the deposit. TheirsThe business model remains unchanged。
The stabilization currency addressed the portability of funds. Funds can move anywhere without permission. The global South has access to the United States dollar. Enterprises can obtain quick settlement。
The proponents of tokenized deposits only want regulated payment channels。
The proponents of the stabilization currency want to replace the bank。
The future requires both。
Fortune 500 powerful firms want large lines of credit from banks and immediate global settlements. Emerging markets want local credit creation, and the dollarChannelI don't know. DeFi wants portfolioability and endorsement of real-world assets。
The debate over who will win over ignoring what is happening. The future of finance is on the chain. Currencyized deposits and stable currenciesThe infrastructure necessary to achieve this goalI don't know。
Stop arguing who wins. Start building interoperability。
groupable currency。
