US tariffs trigger $6tn market crash and potential trade war as global financial system faces biggest upheaval since 1930. What's next for trade, inflation, and digital currencies?
Good background context on tariffs, trade Osborne!
I didn't quite get why this situation will elevate use of stable-coins. While improved payment efficiency is understood, won't volatile exchange rates (USD to x) still impact the trade when stablecoins are converted to fiat?
Should have made it more explicit, but I think with growing geo political tensions and using existing systems for proxy wars will make it difficult to use plain fiat for cross border transactions. Stablecoins might be the better alternative as they don't have to go through SWIFT or other existing rails moreover as the Eastern countries retaliate. However, currently 95% stablecoins are pegged to USD.
Good background context on tariffs, trade Osborne!
I didn't quite get why this situation will elevate use of stable-coins. While improved payment efficiency is understood, won't volatile exchange rates (USD to x) still impact the trade when stablecoins are converted to fiat?
Thanks, Vineet.
Should have made it more explicit, but I think with growing geo political tensions and using existing systems for proxy wars will make it difficult to use plain fiat for cross border transactions. Stablecoins might be the better alternative as they don't have to go through SWIFT or other existing rails moreover as the Eastern countries retaliate. However, currently 95% stablecoins are pegged to USD.