In his latest essay, Arthur Hayes analyzes the implications of artificial intelligence and stablecoins on the US financial system, suggesting significant consequences for the American elite.
Artificial Intelligence and the Elite
Arthur Hayes argues that the rise of artificial intelligence and the decline of US dollar supremacy will undermine the traditional roles of the elite. "America now has AI," he states, emphasizing that machines will replace elite roles previously filled by graduates from Ivy League schools.
Bessent’s Plan to Stabilize the System
Hayes points to the actions of Treasury Secretary Scott Bessent, who aims to dismantle the Eurodollar system by directing funds into dollar-backed stablecoins. He claims that Bessent is unaware of the actual amounts and flows of money passing through this system. The new plan involves rerouting funds through stablecoins like USDT, which function as narrow banks.
The Future of Stablecoins and Their Economic Impact
According to Hayes, the potential influx of $34 trillion in assets into stablecoins may significantly alter trading volumes and the influence of stablecoins in developing economies. He predicts that such changes will lead to the emergence of new DeFi applications and foster an increased demand for stablecoins.
Arthur Hayes' conclusions highlight the importance of changes in finance and technology that could fundamentally alter the position of the American elite and the structure of the financial system. These processes warrant attention and analysis, given their global implications.
