"Code is eating banks" 👇 The process is as follows: 1. Global users hold stablecoins 2. Stablecoin issuers purchase US Treasury bonds 3. The US Treasury obtains lower-cost financing 4. Stablecoins distribute returns to users 5. Inflation taxes become irrelevant 6. Dollar dominance strengthens, debt becomes sustainable In this world, the US doesn't need a 2% inflation rate to finance its debt. Stablecoins are becoming a new distribution channel for US sovereign debt, deepening the need for Treasury bonds as global collateral, making them act as global savings accounts and money market funds. This is why @Tether_to @circle @Anchorage @worldlibertyfi $USDT $USDC $USAT $USD1 are becoming key macro players in this monetary system transformation. These are major conclusions I reached after meeting with my idol, @CathieDWood. Her insight that stablecoins could potentially reset the inflation target to 0 is profoundly principled. Once the "inflation tax" disappears, wholesale bank depositors will no longer be able to profit from cash, and the old fiat currency incentive model will collapse. Code is eating banks. There has been intense debate about whether the US can operate a Modern Monetary Theory (MMT) system similar to Japan's. Historically, the answer has been no, because the structural differences in demand for US Treasury bonds are drastically different from the domestic demand for Japanese government bonds. However, in the future of super stablecoins, these structural constraints will change. If global stablecoins are backed by government bonds, then the world will effectively become a new "domestic auction." This will create a non-vicious, self-reinforcing financing mechanism, rather than a dangerous money-printing mechanism. Of course, this is on the premise that GDP continues to grow, thanks to productivity, population growth, and technological innovation, thus ensuring the sustainability of economic growth.