Transcription
Banks can now create their own stable coin. Now, most people don't understand how stable coins work. So, I'm going to explain it as simply as I possibly can.
Let's say hypothetically you have a h 100red grand. You want to take that 100 grand, put it in USDC so that you can use that USDC to go buy Ethereum in the crypto world. But when you give them $100,000, they are legally required to hold a onetoone reserve of the stable coins that they create.
So JP Morgan will give you $100,000 of their stable coin, but they're legally allowed to take a hundred grand and invest it into something called government debt, which is a very, very safe, it's probably the safest form of investment in the entire planet. But you can go right now to the United States government and say, "Hey, I'm going to give you $50,000." And the government will guarantee that they will give you the money back plus interest.
And then what the government does is they go spend it on different things like building the roads. They spend it on whatever they want. And this is why, you know, America's in so much debt, like with trillions of dollars worth of debt. It's extremely safe because the only way you could lose is if America gets conquered or something like that. Um, so because they can't go bankrupt because they have the Federal Reserve that just prints money when when they need the interest payments.