/biz/ - Business & Finance

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Anonymous Thu Jul 28 06:09:13 2022 No.50605247 [Reply] [Original]

how is raising interest rates supposed to strengthen FIAT currencies? isn't the interest given by the central bank officially printed out on the spot? isn't it supposed to literally increase the money supply? imagine a shitcoin that pays out interest on deposits via a smartcontract, that literally just adds the interest to the existing supply (like UST did). is it just the psychological factor, people haven't yet realized that printed interest can only take away value from the holders of the currency, or is there something more to it?

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