entity · derived
Fiat collateralization
Derived node: assembled mechanically from the claims carrying fiat-collateralization. A roster, not an adjudicated definition.
Every claim under this term
- 3402701-002 : Fiat currency collateralization is expensive and inefficient because the entire backing value must be held liquid; anything less opens arbitrage attacks of the kind Soros used against the Bank of Engl
- 3402701-003 : The minimum cost of a fiat-backed token equals the interest rate of the pegged fiat currency, because the backing capital must sit idle and liquid.