PayPal’s stablecoin, which it debuted in 2023, is supposed to be redeemable at a 1:1 rate for US dollars. $300 trillion is more than double the entire world’s current GDP of $117 trillion. In short, that’s a really bad mistake from Paxos.“
Whoopsie I just mined 300 trillion PYUSD.And please stop questioning the global currency system that was built since Breton woods after WW2 and that global capitalism and trade depends on.
Hurnnnkkkk can you, can you feel it Morty? Can you huurrrrk feel the stability Morty? Soon, thanks to crypto science, we’ll be able to, to exchange all the coins for all the goods and services we want Morty, hnnnk which would have never been possible before bitcoin!
So does this make GDP go up $300T?
Economists don’t want you to know this one weird trick!
Only if you qualify it as a service worth $300T lol. But really though I don’t think it can even be classified as a transfer payment since the IOU is worthless to the issuer.
The joke about economists asking each other to eat dogshit does increase GDP if you qualify eating dogshit as a service. It’s why the inclusion of services in GDP is very questionable because of how difficult it is to measure.
Another example would be healthcare, in the US Healthcare is measured in GDP at price you pay for the final service so you get a bloated GDP. In other countries with universal Healthcare it’s not directly measured and the sector itself is measured at factor cost (wages, equipment etc).
Yet another one, bank charges eg overdraft fees are included in GDP as a service even though it’s closer to a direct tax than a service.
So the GDP increased by $300t then?
Only if you qualify it as a service worth $300T lol. But really though I don’t think it can even be classified as a transfer payment since the IOU is worthless to the issuer.
The joke about economists asking each other to eat dogshit does increase GDP if you qualify eating dogshit as a service. It’s why the inclusion of services in GDP is very questionable because of how difficult it is to measure.
Another example would be healthcare, in the US Healthcare is measured in GDP at price you pay for the final service so you get a bloated GDP. In other countries with universal Healthcare it’s not directly measured and the sector itself is measured at factor cost (wages, equipment etc).
Yet another one, bank charges eg overdraft fees are included in GDP as a service even though it’s closer to a direct tax than a service.
“stable” “coin”
Money is the most fake it has ever been
What in the world is even the point of a coin with 1:1 exchange rate? Just avoiding all the pesky laws? At that point just use the original currency.
It’s easier to bring across a border as you don’t have anything physical. You don’t have to get along with any bank to transfer it to you on the other side. You can transfer it to whoever’s around where you go. The transfers happen near instantaneously compared to using banking services.
I think it tends to be used as an intermediary for doing various crypto shenanigans, usually to stabilize “coins”.
