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Sounds it is more like a money market fund and not an exchange rate regime. Yes, the latter are difficult to maintain but central banks have a large arsenal to
by RandomLensman 5y ago
Sounds it is more like a money market fund and not an exchange rate regime. Yes, the latter are difficult to maintain but central banks have a large arsenal to act and some are in fact pretty stable and uncontested (those policy tools are not available to Tether).
In the end,money market funds are highly regulated.
- dalbasal 5y agoI meant fixed exchange regimes, which are less common now among major currencies. With a floating exchange rate, there are lots of tools central banks have. Stablecoins can't do this, agreed. In a fixed exchange, there's only buying and selling the currency you are maintaining... the stablecoin, so to speak.