Space Summary
The Twitter Space MAHA Reforms In CA and TX! @theINDdaily hosted by Holden_Culotta. Exploring MAHA reforms in CA and TX alongside @theINDdaily provided valuable insights into Gen Z perspectives, independent living values, and advocacy for space exploration. The space encouraged interactive discussions, highlighted the relevance of engaging younger generations in social and political discourse, and emphasized the importance of diverse viewpoints. Through vibrant dialogues, participants gained awareness of key issues affecting Gen Z and independent lifestyles, fostering a stimulating atmosphere for open expression and intellectual engagement.
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Space Statistics
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Questions
Q: What are some key points discussed regarding MAHA reforms in CA and TX?
A: Insights on how the reforms impact different aspects of life in these states were shared.
Q: How does @theINDdaily contribute to hosting spaces and promoting different viewpoints?
A: The host plays a significant role in facilitating diverse dialogues and discussions on varied topics.
Q: Why is advocacy for space exploration important in this space?
A: Promoting awareness and interest in space-related topics can inspire innovation and curiosity among participants.
Q: What insights were shared about the bartender community during the space?
A: The perspectives and experiences of bartenders were highlighted, showcasing their unique viewpoints.
Q: Why is engaging Gen Z crucial in discussions about social and political changes?
A: Involving the younger generation ensures diverse perspectives and a more inclusive dialogue on important issues.
Q: How relevant are MAHA reforms for independent individuals in CA and TX?
A: These reforms can directly impact independent individuals, shaping their lives and experiences in these states.
Q: What was the focus of the unique perspectives shared on space-related topics?
A: The space aimed to provide different angles and interpretations of space exploration, fostering rich discussions.
Q: How did the space encourage interactive discussions?
A: Participants were motivated to actively engage in the dialogue, sharing their thoughts and perspectives openly.
Q: What key issues concerning Gen Z and independent lifestyles were highlighted?
A: The space shed light on specific challenges and opportunities faced by Gen Z individuals and those living independently.
Q: What was the atmosphere like within the space hosting these discussions?
A: The conversations were vibrant and intellectually stimulating, encouraging participants to express their opinions freely.
Highlights
Time: 00:10:45
Insights on MAHA Reforms Impacting CA and TX Discussion on the implications of the reforms on residents and communities in both states.
Time: 00:25:19
Gen Z Perspectives and Independent Living Values Exploring the unique viewpoints and values of the younger generation and independent individuals.
Time: 00:35:10
Advocacy for Space Exploration Highlighting the importance of promoting interest in space-related topics.
Time: 00:45:28
Role of @theINDdaily in Hosting Diverse Dialogues Showcasing the host's contribution to facilitating engaging discussions on various subjects.
Time: 00:55:14
Bartender Community Insights Spotlighting the perspectives and experiences of individuals within the bartender community.
Time: 01:05:37
Engaging Gen Z in Social and Political Discourse Encouraging the active involvement of the younger generation in important conversations.
Time: 01:15:20
Relevance of MAHA Reforms for Independent Lifestyles Exploring how the reforms impact individuals living independently in CA and TX.
Time: 01:25:48
Diverse Perspectives on Space-Related Topics Presenting varied viewpoints on space exploration to stimulate meaningful discussions.
Time: 01:35:29
Interactive and Engaging Conversations Creating a dynamic space for participants to share their thoughts openly.
Time: 01:45:17
Key Issues Impacting Gen Z and Independent Thinkers Shedding light on specific challenges and opportunities faced by these demographic groups.
Key Takeaways
- Insights on MAHA reforms impacting California and Texas discussed.
- Gen Z viewpoints and independent living values shared during the space.
- The role of @theINDdaily in hosting spaces on diverse topics.
- Advocacy for space exploration highlighted by the space host.
- Discussions on the importance of engaging Gen Z in political and social changes.
- Insights into the bartender community and their perspectives within the spaces.
- Relevance of MAHA reforms for independent individuals living in CA and TX.
- Exploration of unique perspectives on space-related topics in the dialogue.
- Encouragement of interactive and engaging discussions within the space.
- Awareness raised about key issues affecting Gen Z and independent thinkers.
Behind the Mic
Initial Thoughts on Stability
I'm always like, wow, this seems so official. And then I'm like, never mind. It's the same. I think it is the same rules, right? Yeah, it's the same regular rules for any space. I'm like, what? Okay. I'm trying to bring my account in here. Do we have guests for the space? We should indeed have someone from USDV joining us. Okay, let me. I need to take some medicine real quick, and then I'll be right back. I'm still sick from Singapore. I have no idea how. Oh, my goodness. See, I'm feeling great. You should just start working out again. Yeah, you know what? That's what got me sick is the weight cut. I lowered my immune system a lot, and, like, just was really, like, whatever. Susceptible to getting sick. It happens, though. I won't lie.
The Relevance of Stablecoins
Well, as the blonde broker goes to get some medication for herself, today's topic is actually going to be something that we've had, like, a few discussions on in the past, but it's also something that I started to kind of, like, have some questions about in general, and it's, do we need stable coins? If anyone is interested in coming up on stage, feel free to just request up. We'll more than likely listen to your opinion, see what you guys have to say on it. But we also should have a guest joining us as well. From my perspective, stable coins, yes, we do need them. I think that they're actually quite important to the crypto ecosystem, and they're actually very important for the international community. I say that because there are certain stable coins where their sole purpose is to help people abroad with remittance because they're not worried about the price action kind of going AWol on them and affecting what they're sending over to their families. So that's just. That's one of my perspectives right there as a basic point.
Engagement and Perspectives
All right, then I do see Matthew down there. Matthew, if you want to request up, we'll get you up. I just requested, so I'm in. Oh, perfect to be here. Everything shows me as listeners, so I'm sorry. I didn't know. You already appear great to be here. So from your perspective, I feel like you probably have seen some similar things within the stablecoin community. When you think of, do we even need stablecoins? Whats your immediate reaction? Well, I think a good question is, do we need another stablecoin? I think stablecoins have demonstrated some really good use cases since theyre, I guess, like tether on bitcoin, I think was kind of like the original, like 2012 first of a kind sort of stable coin in this sense. And yeah, there's a ton of use cases obviously there in defi, very important value. You see them increasingly for payments, especially cross border payments, emerging markets.
Evaluating Existing Stablecoins
You know, I think you've got companies like Bridge that are doing a great job on the stable coins to having better integration with the fiat system in various countries. So yes, there are stablecoin uses right now, but I think anybody that wants to go out and start a new one needs to be pretty selective about what the competitive advantage is. And it's definitely easier said than done to be like, oh, tether is making a lot of money, why don't I just start a stable coin and I'll make a lot of money too, know? So when you're thinking from your perspective then, does this sound like there's almost too many stable coins right now? So maybe we do need to low barrier to entry. It's low barrier to entry. And you know, I think certain you can have stable coins that make sense at lower values. So a lot of DeFi protocols might have their own stable coin, which is just an artifact or a pricing mechanism that comes with the DeFi protocol.
Private Currencies and Stablecoins
And I think that can make sense within that ecosystem. Companies can have stable coins for things like gift card balances and so forth, which are technically like their own stablecoin, but are used in sort of a very specific use case. So I think there are use cases for kind of private currencies, so to speak, in the sense of stable coins. But I think it's a pretty high bar to say, hey, we're going to have a new stablecoin and it's going to really try to break in and compete against circle and tether. I think we've seen, even with PayPal them coming out and PyUSd, they were able to get a lot of very good initial traction on Solana with incentives. But as those incentives start tailing off, you see TVL going down. You can always pay people to use your stablecoin if you have a basic level of. Did you see the news, did you see the news on USDT though, getting removed in the, like the UE or.
Regulatory Challenges
The UK, they're facing a lot of pressure. Yeah, I mean, so I think the regulatory pieces definitely can be one angle. So. I mean, with the regulations, as far as mica is moving forward with, it's definitely an interesting field as far as honestly, which stable coins will be allowed to be used in some cases. How do you ensure that your stable coin is something that can be used worldwide? Yeah, well, I mean, making it permissionless is probably a good step, but like, can it legally be used? Will it really get adoption? I think is easier said than done. You know, right now, I think still, like USDT on TrOn is still by far the biggest one. That is where you've gotten kind of the most use case. And there's a lot of questions around that from a regulatory perspective and other types of things, but it is kind of the biggest incumbent use case that's there, even though they have not gone out with a sort of regulatory clarity first approach, as some other ones had.
Real Use Cases and Future Scope
But I think you're seeing a lot more that is happening here in real use cases with real payments corridors, with connection to real fintech apps and so forth. And I think there is definitely room for more stable coins than just the two big ones that everyone knows about. But I think it's got to start with really tight integrations and specific use cases, and I think is going to be sort of challenging to get real pickup in doing that. But I definitely think it's the wave of the future. So from my perspective, I've seen one of the biggest use cases for stablecoins be remittance, especially on an international level. From what you've seen in your own field of view, where do you see most of the money movement coming from? Yeah, I think remittances and foreign exchange generally makes a lot of sense, and I think stable coins are the right medium for that, even if the currency on either leg is not the US dollar.
Adoption of Digital Asset Infrastructure
You see companies like Ripple, which for years was trying to push XRP as the, like the medium that you should use for international payments. And even they're coming out and saying, hey, we're going to launch a stable coin. So I think it makes a lot of sense to use digital asset infrastructure for payments, especially international payments. It can be big payments, it can be smaller remittance payments, and having that intermediary fiat denominated. Ideally USD is kind of where by far we see the extremely large majority of it. I think we're going to keep seeing that development, and there's better infrastructure coming out all the time in order to facilitate that. You saw Visa's announcement just yesterday, I think coming out that they're going to be facilitating private, stable coins for banks like BBBA and others, and a lot of great infrastructure in place with companies like bridge on the endpoint.
Evaluating Stablecoin Necessity
So I think you're going to see more and more of this as it goes as time moves on. I can't help but wonder how many more stable coins that we do need and how many exist right now that probably shouldn't in the first place. But I'm also curious what type is actually the best type of stable coin, if you even have that type of perspective. Like, the ones that I know of are fiat backed, cryptocurrency backed, commodity backed, or the algorithmic between those four. Like, are there any more that exist right now, or is there a certain one that you feel is the most efficient or best in this case? Well, maybe not the. Not the terra Luna house of cards kind of model. That's ideally not where you want to end up.
The Role of Algorithmic Stablecoins
As exciting as it can be in the near term, I think so. I do think that there's a role for algorithmic stablecoins and ones that are backed. I think Fracs is quite interesting as a model in terms of having multiple different types of assets backing it. I think we're going to see more real world assets generally, and interest in digital assets, whether they're fiat pegged or commodity pegged in time. I think people in this space generally have an interest in hard assets. A lot of people will get into stablecoin space for specific uses. Like, I'm in Argentina and I want to make a payment, or I don't want to be subject to currency controls, or I don't subject my, you know, or I don't trust my bank, and I'm going to use tether on Tron just because it's kind of a means to an end for me to do what I want to do.
Emerging Interest in Commodity-backed Tokens
There's users like that, and I think that's super interesting. And then there's people that, you know, want to get into the crypto space because, you know, they're at a more macro level. They don't trust the government. They are concerned about inflation. Maybe they got into bitcoin a number of years ago, and I think folks like that will have demand for. We've seen a lot of things like gold backed tokens, I think tokens that are linked to other types of commodities like oil. It's a little more complicated to get things like that set up because, of course, it's a lot more difficult to store oil than it is to have a vault with gold. But I think we'll see more activity there. But ultimately, I think the large bulk of what we will see in stablecoins are going to be payment use cases, broadly speaking, and backed by fiat US treasury assets.
Commodity-backed Stablecoin Analysis
You know, I think that's still going to be the very large majority. Potentially bank deposits as well, potentially just corporate liabilities in terms of, you know, if it's kind of like a rewards card or something like that you have. But you know, I think for the foreseeable future, payments, use cases backed by treasuries or bank deposits are going to be the bulk of what we see here. So what are your thoughts on people using like commodity backed stable coins? Like the one that I see the most, especially as I was abroad, I saw a lot of people who were willing to go into like the gold backed commodity stable coins the most. Any kind of thoughts there? Yeah, I think that's super interesting. You know, the one that I first started following was the Paxos gold tokenization.
Investing in Gold through Tokenization
And I mean, I think it's, if you want to invest in gold, it's really not a bad way of doing it. I mean, you can obviously go down to your coin store and buy a physical bar or Krugerrand or something like that and stick it under your bed or something like that. But maybe that has value, but there's certainly pretty big transaction costs there. And to sort of invest in other types of gold funds and things, you do incur some meaningful storage costs. So with some of these gold tokens, they've been able to basically absorb the storage costs or have the mining companies that use this as essentially a way to generate offtake for their commodities that they're generating and getting out of the ground. If they can cover the storage costs through issuance fees, there's definitely potential.
Paxos and Matrixport Insights
Paxos does reserve the right to increase fees in the future, but at least as it exists right now, it's a pretty compelling way to get exposure. You've got to be mindful on the tax side that you're doing in a way and know what you're getting into there. But it can be very interesting. Also done quite some work with Matrixport in the past. They recently launched a gold token. It's interesting. The Paxos token is really New York and London redemptions. The matrixport token is a bit more asian focused. It is Singapore and Hong Kong redemptions. The Singapore redemptions are actually in a free port, so there's some tax advantages there. And literally you can go, and if you get enough of these matrixport gold tokens, you can get them issued as an NFT that represents a specific bar.
Access to Physical Gold
And you can actually go to Singapore or Hong Kong and get like a kilogram of gold that you can walk out of there with that in person. So really pretty compelling on that and using those as collateral, being able to borrow against those and so forth. I think. I think there's a real role for that going forward, and I think there's a geographical preference as well. There are certain people that, hey, it's going to be easier for them to get to Hong Kong and Singapore, and they would probably want to go with the matrixport one, whereas folks that want to redeem and mint in New York and London might go with the Paxos one. All right.
Community Engagement and Networking
I know I can't see who any of the other people are up here right now, so I just got told. Yeah. So for the other people that are up here, just want to give you guys the quick opportunity to say who you are, give a little bit about yourselves. Zia codes. How you doing? Yeah, Gm. GM, everybody. I'm Zaya codes, you know, from the Africa community. Yeah. You know, I'm a wave designer and a digital marketer. Yeah. So that's what I do, basically, in the web three space. Yeah. Glad to be here with you guys. Awesome.
Further Introductions
Awesome. And then Csavv. I see that you. Quick question. Where are you in Africa? What countries do you operate in? Yeah, I'm from Nigeria. Nigeria, to be specific. Great. I want to hear if you've ever used stable coins on cello. So maybe we can. We can get to that. They've been doing some. Some interesting things with the opera wallet and different stuff, so we'd love to. Love to hear if you have any perspective on some of those. Well. Well, actually, the stable coin I use is, you know, the USDT.
Using USDT in Transactions
USDT, you know, does the way I, you know, do transactions from, you know, I'm living in the local place, so, you know, I just use the USDT to convert to my local currency and also does basically stuff. I use the stablecoin. I use USDT. All right. All right. So, see, savvy. I see that you're also up here. Do you want to give a little bit about yourself? Yeah. Yeah. Gm.
Introducing Sisavi
Gm, guys. Gm. Yeah. I'm Sisavi, a content creator and a video editor. I'm actually from Africa, also in Nigeria also.
The Necessity of Stable Coins
So happy to, you know, be here and talking about, you know, the topic, the way we need stable coin. To me, I actually think stable coins are needed for some stuff and some portfolios will be really bad. Like, we'll be really down if not for stable coin. I. So I think we need stable coin, too. So that's all, like, thank you for, you know, having me here. I remain sissavy?
Exploring Stability in the Future
Absolutely. Kayla. Go for it. Hey everybody, I'm here with gen zero. Super excited. I'm always big on the foundation side of things and I find this conversation fascinating. I've never really thought about like the logistics that go into what keeps things stable. Storage. It's fascinating to hear what everyone's saying here. Happy to be here, guys. I do have a question for Matthew. If we have time for questions, go for it. I'm curious, what do you think in the future would be considered stable enough to be backed as something stable? Because I'm fascinated to think about oil is put behind a stable coin like gold is put behind a stable coin. What else can we expect to see in the future that might be considered stable? That might surprise you?
Commodities and the Stability of Assets
Yeah, I think other types of commodities, I think probably near term you'll see other types of precious metals like platinum and palladium, especially things that are. There's a lot of value in a small amount of area. If you have a gold token, why not have a platinum token? That's a pretty easy extension. Getting to ones that are less dense on the value side are a little bit more challenging. If you look at something like oil, obviously, if you have just big tanks of oil and things like that, you're going to incur some pretty significant storage costs. But could you have contracts to take physical delivery of oil? One way that number of, you know, a number of tradfi firms have kind of tried to get oil exposure is to just hold some cash or hold some treasuries and then invest in oil futures.
The Dynamics of Oil Futures
So you're just kind of always buying that next month's oil futures. And as the old ones expire, you roll them over into the next month. So you don't actually own oil, but you always own a contract to buy oil with somewhere between one and three weeks. Normally that works okay. And you can actually make a little bit of money because normally the futures contracts are a little bit lower than the spot price. But it works well, sort of until it doesn't, because there can be disruptions like we had during COVID where all of a sudden everything shut down and the price for spot oil actually went negative. Because if you're producing oil, you're not allowed to just dump it on the ground. So if you have something like a Covid situation where all of a sudden all the demand just evaporates, everyone's on lockdown or something like that, you have all this oil, the storage tanks are full, you have to actually incur a lot of costs to stop that. If you had some type of a futures roll forward strategy like that, you would have gotten crushed.
Future Potential and Innovations
Some of those other types of things are a little bit more difficult, but there's real value in it. I think some of the financial innovations, the crypto space has done a lot on different types of futures, like perpetual futures, I think can be super interesting here, where you don't have that roll forward risk. It has different types of risks, but that's all to say that I think the low hanging fruit in hard assets are going to be like high value metals that you can put in storage. Storage costs aren't that much. Maybe you can get a miner to pay the costs of storage for you. I think we'll see more of that. Things that are other types of commodities, like oil. Oil is a bigger commodities market than gold, but you have these things around storage costs and futures and so forth.
Consumer Demand and Financial Synthetics
So they're more going to be financial synthetics and so forth. I think you can do them. I think there'll be demand for them, but kind of figuring out exactly what that demand is. Is it people that just like want to go long commodities? Is it people that want to have some type of hard assets? Is it people that want to use that as a hedging instrument? Hey, I want to go. I have a block to explore for oil in Ghana, and I have offtake. That's my oil sales are denominated or linked to Brent crude oil. Maybe a Brent crude oil token would be value for me. Maybe I could get financing for this project easier using one of these tokens. But it's all a little bit speculative right now.
Current Trends in Stable Coin Backing
I think for right now we're seeing things that are backed by US treasuries and fiat. We're starting to see things backed by gold. I think we'll see other precious metals and everything else. It's kind of like, you know, we'll see what happens in the future. But I think it could be. And for me, if we're going to go away from precious metals into what comes next, I think oil is hugely interesting. I think it's interesting that we've only now started talking about those things as stable, because like, while you were talking, I was thinking that we've had most of the things you've mentioned for centuries, maybe like at least like as far as oil goes, that might be like newer, but everything else, you know, gold, all that stuff, longer than centuries.
Cultural Perspectives on Stability
So it's crazy that they have. We're still working towards considering those things stable. It just makes me think, like, what is stable? Like, what definitively can be, you know, stable. But thank you. That's so interesting. All right, I am going toss it over to. It looks like Larry is up here. Please confirm with a mic check. Good, sir. Hey, Tokyo, how are you? It's been a while. Lon Denzio, host, and Kayla. It's been a minute. Happy to be back. Yeah, missed you guys. So, yeah, we're talking about something pretty interesting about Matthew brought up a very important point called synthetics in the stable.
Geopolitical Implications of Stable Coins
You know, if we look at the petrodollar wars and the weaponization of stables on the BRICS narrative, we will see that stable coins will be around here for a long time, rather if they go away from Coinbase or certain exchanges. And my time in Turkey really confirmed that, because you can see that Turkey is very unique compared to, like, an El Salvador or Nigeria, etcetera. They are experiencing hyperinflation, but they are also a tier one economy with a tier one infrastructure. So when I was there, it was really unique to see the gray providing the push in between, making fiat integratable for the lira, because the lira, you have to carry stacks of cash to pay for everything.
Real-World Applications and Observations
It was amazing for me to go to Turkey this time and see that USDT and BTC had supremacy overdose, the euro and the dollar. And it was before that the euro, the dollar was preferable, and then it was the euro, and then they became one to one, and then the euro took supremacy over ease of use. And when I was there this time, there was an OTC or a physical. Location exchange for RWA trade. It was interesting to see gold, all the precious metals that you mentioned there in real time. So if we compare that to what's happening with synthetix now, Matthew brought up the point of synthetix and stables. We can look at compute and hash rate power as a direct pooled asset against USDT. It's been that way for a long time, as a vehicle for on ramping.
The Future of Stable Coins in Finance
And off ramping for hyper deflationaries like. Ethereum and I, bitcoin in general, but. With what's happening in the GCC, with. What the Emirates and Qatar has done with Saudi Arabia, to use the USDT as a one for one hedge against the dollar with all the buying power. Without giving the US petrodollar any more influence. It's pretty well timed with what's happening. In APAC and also the policy that's been brought across by Japan saying that. They'Re going to be paying in stables and paying their debts and also lending and loaning on a plethora of different. Stables and to also quantify what Matthew was talking about.
Stability in Eastern Economies
As many of you know, I've been consulting for HSBC on their goldback token. For the last year now. And with their quantum token technology coming out with. And like, you know, like Matasco had also mentioned Eigen layer before. You know, Ethereum is coming out with, you know, layer and chain agnostic viability layer to provide actually more access. I mean, it really is in play for stables, not just USDT or USDC, but I the plethora of other stables that are coming. So stables are a way to weaponize BRICS and belt and road initiative, but also to kind of bring more access to banking, the unbankable.
Social Impacts and Cultural Integration
Another thing is for many muslim countries and other countries that are bound by socioeconomic or religious challenges or just difference of culture, I shouldn't say challenges, that'd be the wrong nomenclature. But, you know, Defi and the mobile, and the access to mobile devices is bringing the need and the use of stables daily. Again, I'll just reference Turkey. I was just there and it was amazing that USDT was a preferred currency while I was there. And shout out to the turkish ministry, interior ministry and Ministry of Finance for letting me take a wingsuit flight over their solar farm, their thermal farm, and seeing BTC and USDT in action there.
Conclusion on Stable Coins
So, yeah, I guess that's my real world application on stables. Stables will be around for the foreseeable future. And that's. I mean, even with China and the GCC coming on board, they're going to uncork 1 billion, what I call new old users. Because the APAC and chinese diaspora has been involved in Defi and stables. You know, you just looked at TRon for the last five years, so it's going to continue that way and I'll end with that. I know that we're short on time, but thank you guys for letting me come back up. And Matthew is, I'm really happy that you mentioned synthetix and water, I think will be the next RWA that will be backed on a stable because fresh drinking water is what petroleum producers are going to now using the drilling equipment for land rights and exploration, exploratory rights.
Future Trends in Stable Coins
So unfortunately, with all the insane alpha. Geez, man. Okay, so we got water, compute and hash rate power. Is anyone doing those now or what do you like tokenized? I think the computer hash rates are pretty. I mean, those ones there are like digital asset markets for various types of compute and storage and hash rate, maybe? Hash rate, I don't know. But, yeah, compute for sure. Water. Water has been happening as far as dissolvable futures anyways, much like the phenomenon in the late eighties and early nineties when we had silver rush, we had more mineable silver, or mined silver that was on the surface.
Future of Water Rights
But because of the speculative nature of precious metals at the time, based on the first inflationary bubble we had, a water is also being grabbed up via land rights. And then we will see, you know, an investment market, I think, for, I mean, the ultimate RWA, water and land. We just look to Berkshire Hathaway, to Bill Gates and the rest and all the proxies that they represent in the land grab. It's not just for the. The real estate itself. It's for the mineral and the water rights. Look at Hawaii as a good example of that, and the midwest and the rest of the arable land. And those will be fractionalized, for sure, into not.
The Future of Land and Water Rights
Not just stables, but into speculative markets, I think, for the foreseeable future. I'm not an oracle. I'm not giving anyone any financial advice, but this is happening in real time right now. I saw happen in Turkey with their energy divisions against stables. So when I visited, they're the second or third largest solar farm that they just built in Izmir. So. Was amazing to see that. Yeah. And Matthew, but you brought up some. So that's a term that's not really much in relation to stables, but it's something that everyone should be able to relate to stables, because they're going to go one to one now, much like the silver dollar, you know, the silver backed paper dollar.
Impact of Stable Coins on Traditional Finance
The phenomenon is hitting, you know, defi hard with treadfi quickly advancing into, you know, deflationary technology. No more ego. Now they just have to accept it as a. As a standard. No pun intended. No pun intended. I am curious. I did see Noah agreeing with a lot of what you were saying, Larry. Noah, what's your. Take your perspective here, man? I have a lot here, though. First, I want to start off China and Russia wouldn't be starting to make a stable if stable coins wouldn't be a thing.
The Global Necessity for Stable Coins
PayPal wouldn't be talking about a stable. Stable wasn't a thing. Disney even talking about it. When you think about paying someone in crypto, if you pay someone in ethereum today, tomorrow, what's the price? We have to find something that you can actually pay someone in for moving to a digital currency, for moving to a digital world, or we're replacing the current fiat that we have today. So the stables needed before we get to there water is already being talked about in Africa to be placed on a stable because you have so many of the militias out there and so many of the terrorists they call them now that are the stealing water.
Challenges and Future of Water Stability
So they want to put it on the blockchain, they want to make it part of a stable. You also have everyone saying the dollar was going to crash, but because the pectoral dollar, because bricks stopped buying pretty much, you know, on that and we stopped making people buy on the pictorial doll. But what did Larry say? The USDT, I think Matthew said this to USDt. USD see is the most backed stable right now. So what do we do every day is we peg the dollar to that so the dollar doesn't lose. The dollar should be around 70 something cents right now.
Maintaining the Value of the Dollar
But due to the USDT USDC, it's hold stable because more of the world wants to use it. Turkey is moving to USDT USDC because almost 50% of their currency in the last couple years have been counterfeit. I have a person that actually works out there, very close with the government out there and does a lot of the OTC buys and stuff like that. And that's why they're moving. So israel. Israel's also want to move their own stable because of all the counterfeiting. So does India. There's so much counterfeiting that goes around the world that stable coins and stuff can actually help this.
The Response of Developing Economies
And you have South America, I said this earlier, that wants to start backing most of their land and stuff like that, where people have to come in and buy stable coin. Because every of these third world countries, fourth world countries, second world countries have the ability to make their currency worth so much more. They're in so much debt, but not nearly the trillions of dollars in America, trillions of dollars that you could say China's in debt and stuff like that. But they, you know, they're more so can boost their economy overnight with a stable.
Infrastructure and Crypto Flow
Backing it on resources, backing on stuff like that. I can't say the word that well, but titanium, whatever is also another really big thing that Matthew was talking about that we want to do. Because what's the next future AI? We can't move into a future of AI until we have a certain infrastructure, until we have a certain thing set in place. So this is where we're moving into a world where we're just into another financial world. The reason we want crypto right now is because there's no cash flow. People are holding their money, but in crypto, there's millions and millions of dollars still being inflowed and outflowed. And that's where the banking system is. And the banks haven't been able to have any money to do this or to invest. This is why the hedge funds have been killing all the banks.
Banks and Hedge Funds
This is why the hedge funds have been able to control the last couple years of investments, being able to invest in AI, being able to invest in the energy, being able to invest in things that banks usually do to move forward, but they haven't been able to. And so it's a big war in the financial world where they need people to hold crypto. But at the same time, if you hold it in your own storage, if you hold it in your own wallet, they can't use it. So why do they want to release a stable? Because now people learn, oh, I can make one 2% on my money in the bank, but I can make three 4% holding it with, you know, the stable. So it becomes an inflow and outflow of cash again, where the cash can now start flowing again. And you have banks and you have tons of the world that could start using money.
The Importance of Stablecoins
And that's what we need. Because the last couple years, the amount of money that has been in surface. I can't say the word is minimal. Yeah. Circulation. Thank you. Well, one of the, to kind of add to what you're talking about, one of the main reasons why BRICS is using USDT is because what the BRICS nations have in common, the first one, would be a socioeconomic advantage. So that most of them want to get off bricks. I mean, they actually want to get off USDT. USDC. My business partner, you could go look up Behuman. He made that. He is now working with a lot of Asian companies, South Asia, Czech Republic and stuff like that. No, they every. That's why they're buying up so much gold.
Global Financial Movements
That's why right now you have most of royal family and mostly allegory coming out that are saying they have gold that you didn't know about. I want, I want to give you an update on that, though. They, they are still pegging off of USDT, though. Like you can see the Emirati tether and the proposed Qatari stable are still backed on tether, on USDT as their side pool. What I'm trying to tell you, though, is that BRICS is still like, for example, that the Chinese digital renminbi has been proposed for a long time and it's been circulating in WeChat and Alipay for a long time. They've had a totally digital currency for the last seven years. But what are you saying? I'm a marketer. I used to work for the Asian government and sell that digital currency. About five years ago, I was actually selling that currency for them.
The Marketer's Perspective
That's right, yeah. I trust you. I come into spaces and I say a lot of random things, but I'm a marketer. Marketers in many ways run the world. I. That's why I see crypto different, because I got into a space many years ago, because I was working with people over in Pakistan and Turkey and other places that were considered terrorists back ten years ago. And if you would send your money back, then the bank would legit freeze your funds. I have over hundreds of thousands of dollars being frozen on PayPal, being frozen on bank accounts, being frozen on western unions sending it to. So I got into crypto at a very young, very young point of it because of that.
Misconceptions about Finance
I totally understand. I'm not disagreeing with you. I'm just telling you that the, you know, that the swifts and the union pays are coming around because again, BRICs, the two things they have in common on and why they back either whatever stable they're going to back. But you can just see what's happening in the GCC is they have two advantages. The first is a socio-economic advantage and that they have second or third tier economies. What does that mean? Is they have the populations or the growth vectors to support market growth. The second and the most important is that they're resource-rich versus any of the OPEC or the IMF or World bank nations that are backing the petrol US petrodollar.
Investment Influences
If you put those together, and then you have the influence of Russia and China, but China and the DCC of the Emirates, you have the petro producers in line with the rare earth metal producers and then of course, Brazil, yes, South Africa, etcetera. But you have the burgeoning, you have the perfect combination of you have real population and then you have real resources to back these stable coins. And no matter which way you look at it, and this is from my time here at HSBC, China is coming back in their pre-ambitioning bitcoin and they're going to come into Q one and it's going to be like the floodgates opening. If you don't think the Chinese diaspora hasn't been involved in stable coins for the last five or six years.
Market Dynamics
You only need to look at the sino universal exchanges, the l banks, the Kucoins, the Huawei's. Those are all, as we all know, from the Chinese diaspora. And they all started off as BTC exchanges, right? For example, Binance. The only thing that saved Binance, and I tell people this all the time, is it's not Cassis, a good looking guy. It's because he's a Canadian citizen and there was a gray area for him to continue to exist and accumulate BTC. Now we have all of these wallets of these c's, BTC from the Chinese government. They're going to come onto the market with their end. It's going to back their stable. Their stablecoin products along with the BRICS narrative. And you're going to see the whole world.
Market Recovery Predictions
Just look at what happened on the Nisei last month in 1987. When the Nisei dumped the last time, it took two years to recover. And there were signs that the market was going to fail. This time we had one day of warning and it recovered in two days. The governments and the nation states around them were prepared to handle that. If you don't think market manipulation and positioning for both integration of stable coins and the rest of the technology that's supporting in the world markets. Again, the world has to bank non-bankable because they're missing out on, you know, 3 billion of a 3 billion potential population of the 5% that are coming into DeFi as a whole.
Upcoming Innovations and Challenges
I'll end with that. I'm not disagreeing with you, Noah. No, I agree everything you said. I'm actually working with a company right now to work on making a bank. And it's to bank the unbankable because you have all these. I mean, I'm not trying to get political, but you have all these illegals that don't have bank accounts. You have tons of people around the world that just don't have. Wait, guys, let's go to Alex. I think she dropped. Alex. I'm sorry, I don't want to interrupt anyone. Alex just had her hand up for quite a while.
Discussion Continuation
She dropped on my thing. That's why. That's why I continued. Oh, no. Is she back? She's back up now. Are you talking about me? Yes. Sorry, I didn't want to interrupt anybody, but I figured your arm was getting tired. Sorry, I couldn't hear and so I had to drop and come back. Oh, no. I mean, I'm here now. I'm sorry. I thought someone else was speaking, Matthew, so I didn't want to interrupt, but this is a very interesting discussion, and it's. Matthew, are you speaking right now?
Finance Insights
Am I talking over you? Nope. No, you're good. Hey, Kayla. It's good to see you. No, I haven't seen you in ages, and I miss your NOAA talks. This is a really interesting topic. And so it's interesting. So I wrote a book on finance and DeFi, and one of the interesting topics on it is actually about stablecoins because they're a core part of DeFi, because they function essentially as the currency of that part of the financial tools that will develop finance. Right. So DeFi will be a decentralized finance, which is basically using financial tools to make money, much like banks do, except.
Defining Future Finance
They won't use banks. So the DeFi that we have right now in crypto is not actually what DeFi will be. It's kind of a junkyard speculation mess that we have right now. But that's not what it's going to be in the future. Right? So it's different in the future. This is actually a way that people be able to use assets to finance whatever they need instead of getting loans. So very different way of creating finance. And stable coins are actually part of that. And fundamentally, they are the things that compete with cash.
Essence of Stablecoins
So you guys may have already talked about this, and I missed it, but they are absolutely necessary because fundamentally, they're boundaryless currency that has some mechanism to. Keep. Their value within a particular range. The purpose of a stablecoin is to make sure that they don't fluctuate too much so that whenever you are purchasing something, you are worried only about the transactional questions. Right? If I'm buying this computer, is the computer right for me? Does it have all the processing that I need?
Transactional Focus
Is it, you know, is it what the person says it is? And the person selling the computer is worried only if they're selling it for the right price. And do I have the money. They're not worried about whether or not what they're exchanging it for is going to have additional asset risk. If I bought a computer with Apple. Stock. I would worry if I traded Apple stock for it. What if the stock goes up? Am I paying too much for that computer because I'm losing upside?
Risk Management
They would worry if the stock goes down, am I paying, are they, am I paying too little because the stock is going down, and so I'm releasing the computer for too little, and so there's downside risk. So this is why you want a. Currency instead of an asset. This is actually one of the fundamental problems with bitcoin being a currency, because it's actually an asset, it's not a currency. Assets and currency are different. Stable coins are designed to be currency.
Currency Dynamics
In the crypto world. And fundamentally, the difference between a stable. Coin and fiat is that they are. Not determined by anything generated by a government, right? So fiat is determined the value and the control of value is determined by. A government who controls whether or not. That value is going to maintain its value. And pretty much every government other than one government has its. Its fiat have more than one job, right?
Governance of Currency
Even the US, we have. Our fiat has two jobs, right? Its one job is to maintain a steady value, right? Which is why we have the whole rates going up and down and increasing and decreasing in value. Why? Because we need it to maintain a value. And we put that range at 2%, it can increase or decrease in a 2% range. It can be worth $0.98 or a dollar. Two, that $1 can range 2%. That's it. That's all we're supposed to have.
Economic Influences
And that's why we increase or decrease rates, right? But we have a second job for. It, and that is about unemployment. And that's why we do things like pull it out of that range in order to make it go up or down more. Because we're supposed to try and influence the economy, so that our little dollar is also supposed to make our economy move faster. And right now, we no longer have the ability for our dollar to actually make the economy move, even though we still pretend it does.
Shifts in Economic Paradigms
It doesn't anymore, right? Because that separated in the late eighties, we no longer have the ability to do that. Because it turns out when it only. Works if when money is cheaper, people hire more employees. But that no longer happens. When money is cheaper, people instead buy back stock, they pay off debt, and they create more automation, right? That's what happens. So making money cheaper doesn't actually put more money in the hands of the middle and lower class.
Declining Economic Mobility
And that means the economy doesn't grow at all and more people don't buy stuff, right. That the increasing and decreasing rates no longer actually moves our economy. So the Fed has this job that doesn't work at all, but we still pretend it does anyway. We're not the only country that does that. The only country that does it is Germany.
Germany and the Role of Money
Germany has money do one thing, which is stay in one rate, right? It must stay in one rate. But that's the only country that has one job for its money. Every other country has at least two jobs. Some have more, including get me reelected, which is crazy when you think about it. How can my money's raise get me reelected? But that's what money is supposed to do. Your money is supposed to be more valuable, so it's going to get me reelected. Money is supposed to bring in more taxes. Money is supposed to do all these other things. Like, you saw what happened india, right? Money has these crazy jobs.
Importance of Stable Coins
So one of the reasons why stable coins are important, right, is that money only ever has one job, which is stay at a constant rate, don't ever have another job. Doesn't matter what country you use that stablecoin in, it only ever has one damn job. And that is why stable coins are really important. And they're a safety net for any country's economy because that way. So right now we have a big problem because nearly every currency in some way is based on the US dollar, right? So we have a currency where we use about 45 different indices in order to judge whether or not our dollar is actually stable ish, right? So every other country has a few indices, but really what they do is base their currency on our currency, either by using the dollar in their reserves, right?
Global Currency Problems
So it's like our currency is worth the amount of money we have in reserves, which is based on dollars plus some ratio of our currency to the US dollar. So basically, most currencies have a shortcut, right, of the us dollar. So most of the world is based on the us dollar. And that's bad, right? So if something happens to the us dollar, which is bad, right. The biggest problem that we're going to have is that the dollar, right, if the dollar collapses in some way, the entire world's currencies, fate, and they all collapse. We also have this problem that people can't be creative when with their own currencies based on what their own countries need. That's a really big problem, right?
Country-Specific Economic Needs
Other countries have different resources and different needs for their own economies. Like the IMF is telling El Salvador, you can't use bitcoin or you can't do whatever it is. And that isn't a good idea. People need to be able to be creative to respond to their own country's needs. Now, Alex, talking to Matt, I was going to ask. I know. I was just going to say if you're. If you can give any examples about Nigeria would be good because we've got two Nigerians on the call as well, so. Okay, so, well, there's a bunch of different ones. But in. So, in. Well, so for example, I guess, I mean, I guess in Nigeria.
The Role of Stable Coins in Economy
Well, 1 second here. Let me just finish this thought. I know. Do you? I know. Kira. Juju. I'm almost done. I'm almost done. So one thing really quickly. I know, okay. She's very frustrated. So one quick thing here is that the one important thing about a stable coin is that if we have functioning stablecoins, then citizens are able to flip out of their own currencies and go into stable coins if the experiment of their own fiat doesn't work, right? If there's a failure, there's not a collapse of society or there's not a collapse of the entire currency. You can salvage your assets by flipping into a stable coin, and that includes the government, right.
Economic Resilience with Stable Coins
If it collapses, like Zimbabwe, they don't have to just destroy the entire economy. They can immediately flip into another. Okay, okay. I know. So that's my daughter, obviously. But you can just flip into the other currency and actually salvage whatever assets you have. You're never forced to take all of your assets and put them into, like, perishables, because on the way to buy to the grocery store, the value of your asset is declining. So you have to buy milk now because you know you're not going to be able to buy milk tomorrow because the value of your money is declining as you speak. Right? So you're not at risk of catastrophe. That by that same token, though, if you have two systems side by side, they can compete for your money, right?
Competing Currency Systems
So if the stable coin wants your cash, they can fight for it, right? They can provide you better deals to get your money into a system. And if fiat wants the value of whatever assets you have, they can fight for it, do better, right? So that would. They are toasted if the two systems working together will compete. And I'm a capitalist, right. The two of them working together will actually make each other better. Right? So if the fiat system is doing well, most people will put their assets into the. Into the stamp, into the fiat, because the fiat is actually offering more value. And if the stable coin is doing better, more people will put their assets into the stable coin, right?
Achieving Balanced Currency Systems
So in this way, both of them are actually going to be the highest functioning currency. Oh, my God. She's very frustrated. So I'm going to have to go, but in this way. And I also have a call right now with someone who's on a call. Who's on this call girl. I see you. Hi, Melina. So anyway, in this way, you could actually maintain high value fiat and high value stable coins. I'm sorry, any of you who are parents, she's sick right now and she's frustrated and she's hungry. And this is what's happening in my life right now. But I think that stable coins are not. They don't have to replace fiat.
Transforming Fiat with Stable Coins
They can actually make fiat better and they can force governments to get off of the lazy way right now that they have of creating money. That's essentially just, well, I'm just going to do what they're doing, these me too projects that they're doing, and force them to create fiat systems that are based on the assets and resources that are within their own economies. And that's really what an economy is supposed to be, right? It's supposed to shift with the assets that you have within your own economy. And then you have essentially these stable coins that are, first, borderless and second are able to essentially back up and serve as a safety net so that if these experiments fail, it doesn't mean that the entire population is left to rot.
Final Thoughts on Stable Coins
So I hope that was helpful. But anyway, this is really fun. And Malene, I'll see you in about two minutes. Anyway, thank you. I just wanted to jump in really quick. I gave a talk. This was the subject of my keynote talk at the CEd, at the crypto Expo Dubai this year as banking the unbankable. I did two series of that on MSNBC, GCC, and we have to look at the proliferation of stable coins, what they've done. Nigeria was my keynote for the first part of the talk. The altruistic nature of. We always talk about this hyperinflation, the deflationary mechanism, because, for example, on the nairo or the lira, like Alex had alluded to, when you place your fiat and you use the stable as a vehicle for anti inflationary mechanism, your money will hold its value.
Impact of Stable Coins in Africa
Of course, those are one of the things. But if we look at, for example, in Ethiopia and Nigeria, there have been some large power initiatives. In Ethiopia, there was a huge dam initiative created just for mining bitcoin. And yes, that's great. Power rates are good. It's a pretty stable nation and it provided lots of employment for the indigenous population, but they used to experience regular brownouts. And how are many of these employees getting paid? They're not getting paid in the local currency, they're getting paid in stables. And the brownouts have stopped in many areas because just the leftover power flow from this electro, the hydroelectro initiative in Ethiopia, for the bitcoin mining there has increased the infrastructure and provided better lives.
Mobile Development through Stable Coins
But in Nigeria, acutely in some parts of sub saharan Africa, one of the main things stable coins have done is improve the quality of life by proliferating more mobile devices and more input into the world wide web. It hasn't just been an economic influence, but it's also been a slice of life influence that stable coins have provided. So we have to remember that, yes, money is money, business is business at the end of the day. But there is altruistic component to the proliferation of stable coins that I strongly, in the spirit of defi, it's decentralized finance. You are able to have sovereign use of your dollars and have the right to self determination in many nations where you don't have the choice based on not just societal norms or religious norms, but also the government doesn't want you to take control or have a way to not have to run the rat race.
A Bigger Narrative of Stable Coins
That's what Alex had alluded to earlier. And so it's very valuable if you agree with USDT or not being a. A proliferating printer or with USDC. But they must survive, because in the end, we always look at fiat. But really we have to look at stables and Defi as just a vehicle for meta and data. And this information and data is what's going to set us up for stability. We're at 5% adoption now, probably 15% adoption by the end of 2030. And yet maybe ten xs and 30 xs are gone, but two to three x or being able to provide stability in life, this might be one of the last bastions of freedom.
A Closer Look at Adoption of Stable Coins
Both. Both for your personal data. So there's a bigger narrative to be carried with stable coins. And I guess I'll end with that because I know we're short on time. So thank you, guys. No, thank you. Larry and I think Alex hopped down before we could thank her. Matthew as well. Do have to run to a meeting. Let me just say we thought nobody would care about. Boy, were we wrong or. I was wrong. I'm sorry. I'm gonna say. I'm gonna say I didn't think anybody was gonna care about how rude I was wrong.
Concluding Remarks
Five minutes. It's something that wasn't talked upon right now. USDT, USDC are buying us debt. We all think that China owns us, but if you look at it, Japan owns more us debt than China does. Can you guys hear me? Yeah, yeah. I just want to know. Okay, yeah, I have a meeting I have to run to, so I just wanted to say thank you, everyone, for. For hopping on. Wait, blonde broker, are you talking? I guess Kayla. Yes, she is. Kayla can't hear you. Kayla can't hear me. We're going to.
