Deposit Tokens
Over my pay grade, but I think this means they now have a way to identify a new form of collateral off which to expand lending = “money”
https://x.com/amital13/status/1955581961151373325
A highly significant development: the tokenization of deposits, coupled with on-chain U.S. Treasury financing via the Canton Network, has the potential to fundamentally reshape liquidity dynamics within the financial system.
In theory, it enables the absorption of government bonds, financed through tokenized deposits, without impacting the Liquidity Coverage Ratio (LCR) or the bank’s reserves.
Current regulatory frameworks are ill-equipped to address such innovations. However, this represents the creation of a new form of “money” with significantly higher velocity.
That’s how you get from stagflation to hyperinflation and the destruction of the currency.(provided not backed and convertible into gold?)
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Best to follow @GraphCall and @LukeGromen on this topic.
One of the risks of people feeling the need to hedge your currency is that if they do it with a real asset like oil or copper, not only do they sell your currency (which is marginally inflationary), but they also drive further explicit commodity inflation when they buy the oil or copper.
Bitcoin is not consumed, so the “inflation” is a somewhat dead end.