RE: Could HBD Change DeFi On Hive?

avatar

You are viewing a single comment's thread:

I can fully understand why having HBD pegged is great for Hive ecosystem, but this is flawed method if we want to decentralize from fiat currency. In the fiat world a country that wants to peg to the dollar rely on trading with US to earn USD dominant. The countries also hold a lot of USD/ US treasuries. The mechanism to control the peg is the country's central bank. If USD weakens, the country sells local treasuries to flood more of their debt into the economy while a stronger USD the country buys up local treasuries to take out local currency from circulation. In short to peg the HBD will require a central group controlling the supply. The HBD Stabilization initiative appears to want to have the authority to do this. I am hopeful that they will succeed, but irony of this is we will have a centralized system pegging the HBD as we are not allowing free market to set a value to HBD.



0
0
0.000
0 comments