The Hive Backed Dollar (HBD) offers something to potentially billions of people. It enables then to get dollar denominated assets which protects against the decline in the value of their local currency.
In this video I discuss all this gives people who do not have access to US dollars through their banks. It is something that operates in digitial form, which most have to use the dollars in banknote form.
▶️ 3Speak
It is nice that you are talking about HBD. It is actually one of the reasons why I stuck with Hive. Hive having its own stablecoin, and offering 20 percent APR on its savings is a big deal. I don't think I've seen any stablecoin offer that high of an APR anywhere.
I'm so happy you brought up the utility aspect of the HBD. Honestly I'm living in the same situation, the dollar is rising so High and breaking my currency. It's now about 15 of it to 1 USD... I'm realizing the HBD is giving me some very good advantage in this situation. HBD is certainly one way of protecting ourselves in these nations... Great insights Taskmaster.. absolutely spot on
Summary:
In this video, the host discusses the utility and value of the High Back Dollar (HBD), a stablecoin on the Hive blockchain. He explains how HBD can be a valuable tool for people in countries where the local currency is rapidly depreciating against the US dollar.
The host highlights how the US dollar has become a de facto currency in many developing nations, with physical dollar bills being used in parallel with the local currency. This is because the US dollar is seen as a hedge against government corruption and mismanagement that can devastate local currencies.
However, obtaining physical US dollars can be dangerous in these countries. The host argues that HBD provides a digital alternative that allows people to gain exposure to a dollar-denominated asset without the risks associated with holding physical cash. Unlike other stablecoins, HBD is not backed by or tied to the traditional banking system, providing an independent, blockchain-based option.
The host emphasizes the massive global demand for dollar-denominated assets, with an estimated 70-80% of physical US dollars circulating outside the United States. He believes HBD can tap into this need, offering people in crisis-hit economies a way to protect their savings and purchasing power.
Detailed Analysis:
The host begins by discussing the devastating impact the strengthening US dollar can have on developing economies. When the dollar rises against local currencies, it makes imported goods more expensive and increases the burden of dollar-denominated debt held by companies and governments in these countries. This can lead to a downward spiral that "obliterates" local economies.
The host explains that in such situations, people often turn to physical US dollar bills as a way to protect their savings, as they cannot easily exchange their local currency for dollars through official channels. However, holding physical cash also carries risks, as it can make people targets for theft and violence.
This is where the host believes HBD can provide a valuable alternative. As a stablecoin pegged to the US dollar, HBD allows people to gain exposure to a dollar-denominated asset without the need for physical cash. The host highlights the key advantages of HBD:
The host notes that the demand for dollar-denominated assets is massive, with an estimated 70-80% of physical US dollars circulating outside the United States. This is because the US dollar is seen as a global currency and a defense against government corruption and mismanagement in many developing countries.
By tapping into this global demand, the host believes HBD can offer people in crisis-hit economies a way to protect their savings and purchasing power. He emphasizes that HBD's independence from the traditional financial system and its blockchain-based nature make it a unique and valuable tool for those seeking to insulate themselves from the effects of a collapsing local currency.
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