Binance gets the green light to invest client assets in US Treasury accounts
On July 19, a US court granted Binance permission to invest customer funds in US Treasury accounts.
According to an order issued by the United States District Court for the District of Columbia, Binance can invest “certain” customers' funds through a third-party investment manager as long as they ensure that the funds are not reinvested. company or any related parties.
The court order also stipulates that Binance must disclose monthly business expenses and any costs incurred by the United States Treasury to protect its investments in operations.
Stablecoins: A way to extend the dominance of the US dollar for decades?
The court's approval to allow Binance to invest client funds in US Treasury accounts underscores the cryptocurrency's role in boosting demand for the ailing US dollar in the face of dollarization efforts by BRICS nations.
In particular, collateralized stablecoins have floated a way to extend the dollar's dominance for decades by buying and holding US debt instruments, offsetting some of the high inflation caused by years of deflation, weak monetary policy and reckless fiscal policy. .
Related: Tokenized US Treasurys Could Reach $3B By Year's End
Tether (USDT) stablecoin is one example. In the year By 2023, Tether will hold $72.5 billion in U.S. Treasuries, the equivalent of several emerging nations. The firm emphasized over-holding as a form of insurance against the dollar-denominated stablecoin against a major downturn.
Former US House Speaker Paul Ryan also discussed how a stable coin could ease the debt crisis and allow the US dollar to remain competitive in global trade markets.
Ryan pointed to the significant demand for the US dollar and the fiat-equivalent tokens that underpin the value of the dollar-pegged stablecoins that generate US debt instruments.
Others, like Alex Gladstein, chief strategy officer of the Human Rights Foundation, believe that dollar-pegged stablecoins will only perpetuate the broken fiat-centric system that the decentralized digital one is meant to replace.
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