Excerpt:
"remember when I postulated some issues back that China could use their massive US treasury hoard to create a stable coin, such as Tether. A sort of Chinese crypto dollar, backed by their nearly $1 trillion treasury hoard.

The idea was that they could bypass Western financial infrastructure (no need for SWIFT or US intermediary banks). They’d still use dollars, but effectively use “their” dollars. They would trade with their counterparties (who all owe dollars), but allow for the convertibility to yuan… at their choosing. This would wean their trading partners off of dollars and reduce reliance on the US Western monetary system while simultaneously allowing China to use dollars to usurp the dollar system. My focus at the time was around crypto and how the use of Tether has already forged forward proving the theory for them. After all, copying is easier than creating, and they’ve all the incentives aligned.

Well, guess what? I just came across an excellent tweet from Arnaud Bertrand (great follow on X, by the way.)"