While this is true, stablecoins and bank deposits move the supply curve out, lowering the cost of dollars in those impoverished or unsophisticated markets. This is a large part of Tether’s business. An equilibrium of higher USD demand is possible as USD cost falls
Andy Constan
Andy Constan27.7. klo 19.14
Did you know at this very moment ALL demand for USD assets is fulfilled? Did you know that an even the most impoverished and unsophisticated emerging market person with no access to USD financial system CAN still buy all the USD they want by bidding up physical currency (paper bills and coinage). Did you know that currency in circulation can trade at a different price than electronic currency because of this dynamic?
Of course, that USD cost could fall bc of the demand curve moving as well! This is typically what we think of in forex. Stablecoins are one of those uncommon changes to the cost inputs of acquiring USD assets.
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