⚡ The USA is turning stablecoins into a "vacuum" for capital — Arthur Hayes
Main points of his new essay:
◾️ Buffalo Bill from the Treasury
New Treasury Secretary Scott Bessent, according to Hayes, intends to destroy the eurodollar market (~$10–13 trillion outside the US) and convert those deposits into stablecoins.
◾️ Eurodollars vs stablecoins
Eurodollars do not support the demand for US debt.
Stablecoins, on the other hand, are required to hold reserves in Treasury bonds (T-bills) → automatic financing of national debt.
◾️ Big Tech as a wallet
WhatsApp and Instagram can distribute dollar crypto wallets to billions of users. In such a scenario, central banks around the world will lose control over the money supply.
◾️ Pax Americana 2.0
Stablecoins will become part of the "American world," strengthening the global influence of the dollar.
◾️ For DeFi, this is a bull run
The demand for stablecoins and, consequently, for DeFi infrastructure will create conditions for the largest growth in the history of the industry.
Hayes sees stablecoins as a tool of geopolitics and at the same time — fuel for a new supercycle of the crypto market.