Tether is launching a stable coin for the United Arab Emirates Dirham („AED“).
For background, the AED is pegged has been pegged to the USD since many years and as part of the petrodollar system. The UAE are among the biggest oil exporters worldwide. They get paid in USD and then recycle these USD back into US government bonds.
The USD/AED peg is being artificially amaintained through the UAE central bank buying and selling US dollars and AED respectively.
Creating a stablecoin for the AED therefore means a double peg:
USD to AED
AED to Stablecoin
More remotely, there is also a “peg” of the USD to crude oil…
If you ask me, it’s just a matter of time for this to break.
https://www.reuters.com/technology/tether-provide-stablecoin-pegged-uaes-dirham-2024-08-21/
#nostr #USD #bitcoin #tether #stablecoin
Nostrrrgh
npub1ah…00q54
2024-08-22 04:57:37
Author Public Key
npub1ahgyj3vryn8tfpzjz8hqdhs9sj59ttzpr60rugzl2v439vevw4tst00q54Published at
2024-08-22 04:57:37Event JSON
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"content": "Tether is launching a stable coin for the United Arab Emirates Dirham („AED“).\n\nFor background, the AED is pegged has been pegged to the USD since many years and as part of the petrodollar system. The UAE are among the biggest oil exporters worldwide. They get paid in USD and then recycle these USD back into US government bonds. \n\nThe USD/AED peg is being artificially amaintained through the UAE central bank buying and selling US dollars and AED respectively.\n\nCreating a stablecoin for the AED therefore means a double peg:\n\nUSD to AED\nAED to Stablecoin\n\nMore remotely, there is also a “peg” of the USD to crude oil…\n\nIf you ask me, it’s just a matter of time for this to break. \n\nhttps://www.reuters.com/technology/tether-provide-stablecoin-pegged-uaes-dirham-2024-08-21/\n#nostr #USD #bitcoin #tether #stablecoin",
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