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I'm confused. Why are low interest rates required for stablecoins to work? If anything, for centralized stablecoins, high interest rates would mean more revenue
by xur17 5y ago
I'm confused. Why are low interest rates required for stablecoins to work? If anything, for centralized stablecoins, high interest rates would mean more revenue for the corporation holding the assets.
- Aperocky 5y agolow interest rates means there are abundance of US dollars floating around for people to engage in things like stable coins. high interest rates means less growth for any assets as liquidity gets tied/dries up. Interest rates are cyclical, all high interest rates cause a period of pain and death for semi-ponzi schemes that works during periods of low interest rates.