Crypto Is Good for Tru*p but Bad for America

[usonian]

NYT, archived: https://archive.ph/uiVIq

https://www.nytimes.com/2025/05/23/opinion/trump-crypto-stablecoin.html

By Dan Davies and Henry J. Farrell

Like other "genius" moves, this appears to have the effect of isolating the US from the rest of the world, but also enriching its MAfia GAngster boss (MAGA)


Among other things in the article:

As part of the European Union’s program to build strategic autonomy — its term for weaning itself from dependence on America — the European Central Bank is working as fast as it can on building a digital euro. This would provide an entire alternative payment network. That would provide built-in privacy and security and, unlike stablecoins, would be controlled by the public sector.

In this case, stablecoins are not cementing dollar dominance by allowing the United States to catch up with the rest of the world. Instead, they may be incentivizing others’ efforts to get away. Europeans are not only building their escape route but also planning a global alternative to a U.S.-dominated system that seems ever less trustworthy.

The European Central Bank board member responsible for the digital euro has begun talking about the “possible international use” of a payment system that “respects the sovereignty of third countries, mitigates potential risks for them and offers them new opportunities.”

Stablecoins were supposed to leverage dollars to stabilize the chaotic universe of crypto. Instead, they seem set to infect the dollar-dominated financial system with the unique combined chaos of crypto and Mr. Trump.

Stablecoins? Like THESE stable coins?

[Diraven]

1. The Trump plan for stablecoins is criminal

Basically he wants to create billions dollars worth of them out of thin air, 90%+ of which will be owned by himself and his family, which are pegged to the value of the US dollar. It's essentially counterfeiting, the only difference is they are purely digital and not on printed paper. And the only intrinsic value they will have is for buying influence with Trump by enabling anonymous bribes. So unlike his memecoin once he sells his stake they are essentially worthless, but by valuing them at a dollar they try to make them appear less volatile and so safer and more legitimate.

[ParanoidAndroid]

2. no, stablecoins will be required to be backed by real dollars

The Genius act regulates stablecoins by requiring 1:1 backing with safe assets like U.S. Treasury bills (T-Bills) or cash equivalents, under Federal Reserve or state oversight. Stablecoins backed by T-Bills create massive demand for U.S. debt, reinforcing the U.S. dollar’s dominance.
A good thing too, since most of the world is no longer buying US debt, and selling what they already have. The Brics nations are working toward methods to trade with each other without having to use the US dollar, weakening the dollar as the world reserve currency.
Trump's insanity with tariffs and bullying the rest of the world is turning the whole world against us, and turning us from a major country to a banana republic led by a stupid petty dictator. The rest of the world wants nothing to do with us, and they are all laughing at us due to our extreme stupidity.