Nostronaut on Nostr: Tether is launching a stable coin for the United Arab Emirates Dirham („AED“). ...
Tether is launching a stable coin for the United Arab Emirates Dirham („AED“).
For background, the AED is pegged has been pegged to the USD since many years and as part of the petrodollar system. The UAE are among the biggest oil exporters worldwide. They get paid in USD and then recycle these USD back into US government bonds.
The USD/AED peg is being artificially amaintained through the UAE central bank buying and selling US dollars and AED respectively.
Creating a stablecoin for the AED therefore means a double peg:
USD to AED
AED to Stablecoin
More remotely, there is also a “peg” of the USD to crude oil…
If you ask me, it’s just a matter of time for this to break.
https://www.reuters.com/technology/tether-provide-stablecoin-pegged-uaes-dirham-2024-08-21/
#nostr #USD #bitcoin #tether #stablecoin
For background, the AED is pegged has been pegged to the USD since many years and as part of the petrodollar system. The UAE are among the biggest oil exporters worldwide. They get paid in USD and then recycle these USD back into US government bonds.
The USD/AED peg is being artificially amaintained through the UAE central bank buying and selling US dollars and AED respectively.
Creating a stablecoin for the AED therefore means a double peg:
USD to AED
AED to Stablecoin
More remotely, there is also a “peg” of the USD to crude oil…
If you ask me, it’s just a matter of time for this to break.
https://www.reuters.com/technology/tether-provide-stablecoin-pegged-uaes-dirham-2024-08-21/
#nostr #USD #bitcoin #tether #stablecoin