05/28/2021 - Yra Harris: Precious Metal-backed Chinese CBDC?
“The idea of a STABLECOIN has been thrown around but she is the first one to define it: “A stablecoin is a type of digital asset whose value is tied in some way to traditional stores of value, such as government-issued, or fiat, currencies or gold. Stablecoins vary widely in the assets they are linked to, the ability of users to redeem the stablecoin claims for the reference assets, whether they allow unhosted wallets, and the extent, and the extent to which a central issueris liable for making good on redemptions rights. Unlike central bank fiat currencies, stablecoins do not have legal tender status.”
This is earth-moving comments from a FED governor. The mention of a GOLD-BACKED CBDC is what we at NOTES have been discussing as a Chinese move to disrupt the international order. Here we have Brainard raising the issue of a possibility of precious metals ensuring the value of the FED‘s stablecoin with an underlining value anchor. If the Chinese were to fulfill the role of Revisionist Power rather than status quo power what better way then to be first mover to a SILVER- or GOLD-backed CBDC. This is a very serious issue raised by a powerful voice on the Federal Reserve. Failure to be attentive will not serve the global investment world well. The DYNAMISM of GLOBAL FINANCE lies far beyond the walls of WALL STREET.
