USDC: De Facto CBDC?

Stablecoin supremacy is the play. [Altucher Confidential] March 01, 2023 [WEBSITE]( | [UNSUBSCRIBE]( “Stablecoins could act as the onramp to the dollar economy for billions across the world, ushering in a new era of U.S. financial dominance.” [Hero_Image] USDC: De Facto CBDC? By Chris Campbell Download My New Survival Guide Today! I’ve created a BRAND-NEW “2023 Crisis Survival Guide” that I’m making available to all of my Strategic Intelligence readers today. This short 54-page document has everything you need to know to protect yourself and your family in times of crisis. Things like what foods to stock up on now, staying safe during periods of rioting and looting and more. Inside I break down all of the coming threats you face and how to prepare. [To see how to download your copy, click here now.]( [Chris Campbell] CHRIS CAMPBELL Upon writing, the sun is about to rise over my small town… and I’m getting ready to get out of Dodge. In three hours, I’m heading off to ETHDenver, Ethereum’s largest and longest-running conference. There, we’ll get our finger on the pulse on everything from crypto regulation to new opportunities coming down the pike. I’m especially interested to hear what the cryptosphere thinks about the SEC’s latest actions… And especially as they relate to stablecoins. If you’re not caught up on the latest, today I’ll share what’s happening on the stablecoin front… WHY it’s happening… And what I think will happen next. (If true, few will see it coming.) In short, it has everything to do with the US government EMBRACING stablecoins, and during a time when many expect it to do the exact opposite. Let’s start from the top. The SEC Attacks! Two weeks ago, the SEC revealed its intent to sue stablecoin issuer Paxos for its Binance USD stablecoin, which the SEC argues is a security. As per the 30-day process from intent to execution, a lawsuit should be announced within the next two weeks by the SEC. This comes on the heels of a settlement from crypto exchange Kraken, after which the SEC demanded it shut down its staking services. It’s guaranteed that the SEC’s logic in these actions will be applied elsewhere in cryptoland, especially toward other stablecoins. After all, Gary Gensler, head of SEC, has made it clear that he considers all cryptos -- except for King Bitcoin (BTC) -- to be securities. Stablecoins obviously included. There’s plenty to say about that in regards to Ethereum. And say things about it we will. But, today, let’s stick to stablecoins. As you can imagine… SEC’s move has been disastrous for BUSD and the cryptosphere has taken a couple lumps on the head, too. Coinbase has suspended BUSD trading and other companies, like [Visa and Mastercard]( have decided to hold off on launching their crypto products until the regulatory environment improves. [image 1] Also, PayPal—the world’s largest online payment processor—put development of its own stablecoin [on hold](. Biden’s Plan to Confiscate Your Cash? [Click here for more...]( On March 9, President Biden quietly signed Executive Order 14067. This Order could pave the way for Democrats holding onto power in 2024. In fact, they could control America indefinitely. A former advisor to the CIA and Pentagon believes this order could allow for legal government surveillance of all US citizens; total control over your bank accounts and purchases; and the ability to silence all dissenting voices for good. To protect your freedom and your wealth, [see his dark warning now.]( Why Stablecoins? When it comes to crypto’s aim at disrupting legacy finance… Stablecoins have been the most disruptive, especially over the past couple of years. As one example, in places hit with heavy inflation -- from Zimbabwe to Argentina -- we’ve seen major adoption. In fact, according to a [study]( released by Mastercard, more than one-third of Latin Americans have used private stablecoins. In Venezuela, stablecoins make up 34% of all small transactions. “In an unexpected twist,” Sam Lyman writes in Fortune Crypto, “stablecoins are acting as the hedge against inflation that Bitcoin was supposed to be. If stablecoin adoption continues apace, it could be a trillion-dollar industry by the end of the decade. In the ultimate crypto coup, Uncle Sam could replace Satoshi as the king of digital currency.” Stablecoin Supremacy? Alas, says Lyman, “SEC regulations could shut them out again. If the agency classifies stablecoins as securities, it will present a tremendous hurdle to global adoption—and it will do so at a critical time for U.S. dollar hegemony.” Indeed, if you look closely, the once-omnipotent King Dollar now has beads of sweat on its brow. Says Lyman: “a smaller percentage of global energy transactions are taking place in dollars, and the digital yuan is ascendant.” Xi Jinping has long been putting the pinch on major oil producers to give the dollar the cold shoulder and settle in yuan instead. And sure, the US could follow in the footsteps of China and launch its own Central Bank Digital Currency (CBDC). But… The case can be made that the US stands to gain far less from a contrived “FedCoin” than it would by embracing the already-successful US dollar denominated stablecoins. As Lyman put it: “The [SEC] must see stablecoins for what they really are—not a nuisance to be dealt with but tools for projecting American economic power. With the organic growth of stablecoins worldwide, we have before us [the greatest opportunity for U.S. dollar expansion since Bretton Woods](. “If tech is the new oil,” Lyman goes on, “then let well-regulated stablecoins replace the dollar in energy transactions, and become the de facto currency of the internet. Stablecoins could act as the onramp to the dollar economy for billions across the world, ushering in a new era of U.S. financial dominance. We would be foolish to forgo this opportunity.” “It’s Over. We Lost.” Since Lyman published his article, the idea that the US could leverage stablecoins for its own benefit is gaining steam. For one, the Financial Services GOP’s Twitter account tweeted it out with the message that the attack on stablecoins “threatens U.S. dominance of the digital economy.” [image 2] You’ll recall that the Committee -- which oversees the entire financial services industry, the Fed, the Treasury, and the SEC -- is considered to be one of the House's most powerful committees. To boot: During a recent hearing on stablecoins, the committee was overwhelmingly optimistic about the technology. So much so that the subreddit r/Buttcoin -- notorious for its unfettered hatred of all things crypto -- fell into a deep depression from which it has yet to fully recover. One Redditor, cryptoheh, said: “I spent 10 mins watching that and I think it’s over. We lost.” [image 3] “Well,” said another, “that was disheartening.” [image 4] And another, named stablescam, said this: “The two opening statements seem rather bullish. Holy sh**. Comparing to Skype, Internet, etc. in terms of innovation. Major emphasis on not withholding this innovation. They are literally going to butcher [the] US dollar, aren’t they?” [image 5] Clearly, some in DC disagree with our dear Buttcoiners. With Hong Kong’s recent announcement that it’s going to allow institutional investors to get exposure to crypto in the Summer -- alongside a subtle nod of approval from daddy China -- this issue might seem all the more pressing. Add to that… Increasingly, countries -- even our closest allies like the UK -- aren’t as keen on following the US’s lead on crypto regulation. (Perhaps they recognize that the countries complying with the current regulatory regime in the US risk being left behind.) The question: Could the US be preparing to whip out its secret weapon? USDC: De Facto CBDC? USDC is the second-largest stablecoin, behind Tether (USDT), boasting a $42 billion market cap. Circle, the issuer of USDC, has close ties with BlackRock and, by proximity, the Fed. The company recently announced its plans to shift 80% of its holdings into a BlackRock government-only money market fund. AND… BlackRock has laid out plans to apply for access to the Fed’s reverse repo program, RPP. As Barclays put it, “RRP access would give USDC indirect access to a central bank liability and make it a closer substitute for insured bank deposits and CBDC.” Meaning? As founder of Coinbase Brian Armstrong put it, [USDC is set to become the “de facto CBDC in the US]( It remains to be seen how this will shake out… (But one thing to keep in mind -- for what it’s worth to you -- is that USDC resides on the Ethereum network.) The SEC’s actions seem to fly in the face of these developments, putting the fear into those still on the fence about crypto. Meanwhile, we remain steadfast that crypto is here to stay. And we’re hard at work spotting the signals amidst the noise. More on that -- and much more from ETHDenver -- to come. Until next time, [Chris Campbell] Chris Campbell For Altucher Confidential New LIVE Demo Video STUNS Crypto Investors In [this short 3:28 video…]( Crypto genius James Altucher reveals his most shocking crypto secret yet… A little-known secret that’s delivered over $1,170 in FREE crypto income per month. If you AREN’T using this affordable little device… You’re missing one of the best, easiest ways to earn real cash with cryptos. [Click here to watch this short 3:28 video NOW.]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Altucher Confidential e-mail subscription and associated external offers sent from Altucher Confidential, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@altucherconfidential.com. This address is for feedback only. For questions about your account or to speak with customer service, [contact us here]( or call (844)-731-0984. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized financial advice. We allow the editors of our publications to recommend securities that they own themselves. However, our policy prohibits editors from exiting a personal trade while the recommendation to subscribers is open. In no circumstance may an editor sell a security before subscribers have a fair opportunity to exit. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. All other employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Altucher Confidential is committed to protecting and respecting your privacy. We do not rent or share your email address. Please read our [Privacy Statement.]( If you are having trouble receiving your Altucher Confidential subscription, you can ensure its arrival in your mailbox by [whitelisting Altucher Confidential.](