I think @CaitlinLong_ is on to something here... In April, Treasury asked the Treasury Borrowing Advisory Committee (TBAC) to look into whether "tokenized money funds present a risk should they be allowed to compete with other payment or settlement instruments" (my emphasis) /1
Caitlin Long 🔑⚡️🟠
Caitlin Long 🔑⚡️🟠24.7. klo 21.54
💡 Treasury tokenizing T-bills — and disintermediating Fedwire as a payment system — is the next chapter in the decades-long Treasury v Fed tug-of-war. Fiscal dominance.
@CaitlinLong_ Also in Treasury's request: "the distinctions between money funds and payment stablecoins has continued to converge" TBAC didn't do as asked (a weak report), but the wording of the request gives a glimpse of Treasury's thinking
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