WEBVTT - What Is a Stablecoin?

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News. Today a victory celebration

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<v Speaker 1>at the White House as Republican lawmakers and crypto industry

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<v Speaker 1>leaders gathered around the President for the signing of the

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<v Speaker 1>Genius Act. On July eighteenth, President Trump signed the Genius Act.

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<v Speaker 1>It's the country's first major federal cryptocurrency legislation. A landmark

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<v Speaker 1>bill establishing a regulatory framework for the roughly two hundred

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<v Speaker 1>and fifty billion dollar cryptocurrency market known as stable coin,

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<v Speaker 1>has become law. The law focuses on a type of

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<v Speaker 1>cryptocurrency called stable coin.

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<v Speaker 2>It's a digital asset that's designed to maintain a stable price,

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<v Speaker 2>as the name suggests, and it's typically backed by reserves

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<v Speaker 2>that are held in short term assets like short term

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<v Speaker 2>US treasuries or cash.

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<v Speaker 1>Emily Mason covers cryptocurrencies for Bloomberg.

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<v Speaker 2>With the crypto industry, there's so much stuff that's really

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<v Speaker 2>out there in odd like there's NFTs, there's the board apes,

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<v Speaker 2>there's dogecoin, There's all these kind of crazy, really volatile cryptocurrencies.

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<v Speaker 2>And stable coin is the thing that really has kind

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<v Speaker 2>of real use cases in the real world for real

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<v Speaker 2>businesses and real financial institutions.

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<v Speaker 1>Emily says the signing of the Genius Act into law

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<v Speaker 1>marks a major and long awaited milestone for the crypto industry.

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<v Speaker 1>Stable Coins already make up about two thirds of crypto transactions,

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<v Speaker 1>and this new legislation will make it much easier for

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<v Speaker 1>the digital assets to go mainstream.

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<v Speaker 2>The challenge beforehand is that there were a bunch of

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<v Speaker 2>companies and financial institutions that were sort of stable coin curious,

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<v Speaker 2>but they couldn't really act on that curiosity because they

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<v Speaker 2>didn't know if it was allowed or if they were

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<v Speaker 2>going to get in trouble. I think now it's where

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<v Speaker 2>the building can really start happening and scaling.

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<v Speaker 1>I'm Sarah Holder, and this is the big take from

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<v Speaker 1>Bloomberg News today. On the show, what are stable coins

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<v Speaker 1>exactly work, Why they were the focus of the US's

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<v Speaker 1>first crypto legislation, and what their wider adoption could mean

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<v Speaker 1>for the crypto industry, for banks, and for you and me.

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<v Speaker 1>If you chart the price of a cryptocurrency like bitcoin,

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<v Speaker 1>you get a very bumpy roller coaster. It makes for

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<v Speaker 1>a wild ride. But stable coins they're designed for minimal

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<v Speaker 1>motion sickness.

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<v Speaker 2>They can even be pecked to commodities like gold, but

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<v Speaker 2>typically the most popular ones, they're packed to the US dollar.

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<v Speaker 1>Okay, not to get all philosophical on you, but the

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<v Speaker 1>US dollar, like any other currency, it's kind of make

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<v Speaker 1>belief it has value because we all believe it does.

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<v Speaker 1>For a long time, the US dollar was actually backed

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<v Speaker 1>by gold, real tangible gold that helps set the value

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<v Speaker 1>of a dollar and keep it stable. We stopped doing

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<v Speaker 1>that in the nineteen seventies. But cryptocurrency are brand new,

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<v Speaker 1>relatively speaking, and they're not backed by a trustworthy government.

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<v Speaker 1>Their value has been notoriously volatile. Stable coins are supposed

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<v Speaker 1>to be the answer to all that volatility, because the

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<v Speaker 1>value of most stable coins isn't just determined by how

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<v Speaker 1>much people are willing to pay for them on any

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<v Speaker 1>given day, but by the value of the traditional currency

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<v Speaker 1>they're pegged too. For every stable coin, they're supposed to

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<v Speaker 1>be a dollar again, a US Treasury bond, or some

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<v Speaker 1>tangible asset locked away in a vault, kind of like

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<v Speaker 1>there used to be gold for the dollar. But this

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<v Speaker 1>of course begs the question, if you really want something stable,

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<v Speaker 1>why not just use a dollar.

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<v Speaker 2>So the advantage in the demand for a stable coin

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<v Speaker 2>is you can use it for transactions. You can use

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<v Speaker 2>it as a payment vehicle because the price isn't volatile,

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<v Speaker 2>but you can still get the advantages of the blockchain.

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<v Speaker 1>Quick reminder of what the blockchain is for those of

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<v Speaker 1>us who might need one. It's essentially a digital district

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<v Speaker 1>needed ledger.

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<v Speaker 3>Keeps track of the transactions.

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<v Speaker 2>I think the advantages of digital currencies that people are

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<v Speaker 2>really excited about are, for example, it's programmable, so you

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<v Speaker 2>can do things like if this happens, then send this payment,

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<v Speaker 2>and that can happen automatically with something called a smart contract,

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<v Speaker 2>which are you know, contracts that are automatically executed when

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<v Speaker 2>certain conditions are met. So that's something that people are

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<v Speaker 2>really excited about with digital currencies, and you can make

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<v Speaker 2>that work with stable coin.

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<v Speaker 1>Stable Coin, like other cryptocurrencies, operates on the blockchain, so

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<v Speaker 1>you get all those advantages while avoiding the crazy price

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<v Speaker 1>fluctuations we were talking about earlier. Makes sense in theory,

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<v Speaker 1>but I asked Emily, in the real world, what are

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<v Speaker 1>companies and people actually using stable coins for.

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<v Speaker 2>Yeah, so if you're a big institution and you're managing

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<v Speaker 2>entities kind of around the world, and you need to

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<v Speaker 2>be moving money quickly between them. Then stable coin's attractive

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<v Speaker 2>for that reason because it's instant and it's twenty four

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<v Speaker 2>to seven versus other means of payments, especially cross border,

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<v Speaker 2>have to go through like a correspondent banking system, so

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<v Speaker 2>it kind of gets pinged between like bank ABCD until

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<v Speaker 2>it gets to its final destination. Each of those banks

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<v Speaker 2>charges a fee, and each of those banks can add

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<v Speaker 2>delay to the transaction actually settling and clearing. So stablecoin

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<v Speaker 2>cuts out all of those intermediaries and it lets you

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<v Speaker 2>kind of just send it directly from point A to

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<v Speaker 2>point B, so that can be cheaper, that can be

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<v Speaker 2>more efficient, it can be faster, and it can happen anytime.

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<v Speaker 2>So that's kind of the advantage of stable coin.

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<v Speaker 1>It's like wiring money turbo speed.

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<v Speaker 2>Yes, it's like wiring money, and that can have a

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<v Speaker 2>lot of business advantages. So like if I need to

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<v Speaker 2>pay a vendor abroad and I'm running a business in

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<v Speaker 2>the US and the vendor is not going to release

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<v Speaker 2>my goods to me, that I need to run my

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<v Speaker 2>business until the payment lands. If I can do that

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<v Speaker 2>instantly with stable coin, like that really helps me run

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<v Speaker 2>my business more efficiently.

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<v Speaker 1>What about consumers, Why would someone like you or I

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<v Speaker 1>use a stable coin.

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<v Speaker 2>Yeah, so in the US, consumer payments work pretty well.

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<v Speaker 2>Like I personally don't really need a stable cookin in

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<v Speaker 2>my day to day. But if you're living in a

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<v Speaker 2>country where the native currency is more volatile and it's

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<v Speaker 2>not a good store of value, then access to dollars

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<v Speaker 2>is really appealing, and I might not be able to

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<v Speaker 2>get a US bank account very easily. So holding stable

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<v Speaker 2>coin is really attractive for that reason. And like, one

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<v Speaker 2>trend that's emerging is US companies employing contractors abroad are

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<v Speaker 2>using stable coin to pay them, and a lot of

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<v Speaker 2>different payroll providers are coming out with solutions to enable that.

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<v Speaker 1>The problem is stable coins aren't always perfectly stable. A

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<v Speaker 1>stable coin can break from the currency or asset it's

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<v Speaker 1>pegg two. Emily says. This is called a depegging event.

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<v Speaker 2>That's when the stable coin isn't trading one for one

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<v Speaker 2>for like one USD.

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<v Speaker 1>One of the most high profile depegging events happened a

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<v Speaker 1>few years ago and it involved one of the largest

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<v Speaker 1>stable coin issuers called Circle.

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<v Speaker 2>So Circle very briefly depegged when Silicon Valley Bank failed

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<v Speaker 2>because they were holding a lot of their reserves there.

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<v Speaker 1>Silicon Valley Bank was the favored regional bank of many

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<v Speaker 1>California tech firms. When it collapsed in twenty twenty three,

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<v Speaker 1>Circle suddenly lost access to a chunk of its reserves.

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<v Speaker 1>Spooped investors sold Circle stable coin, and its value fell.

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<v Speaker 1>Instead of being one to one with a dollar, the

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<v Speaker 1>issuer's stable coin briefly fell as low as eighty one

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<v Speaker 1>and a half cents before Circle reassured investors and the

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<v Speaker 1>price bounced back, but other stable coins haven't been able

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<v Speaker 1>to recover.

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<v Speaker 2>Kar Luna was a really popular stable coin, and then

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<v Speaker 2>that kind of had like a spiral deepegging episode and

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<v Speaker 2>is now defunct.

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<v Speaker 1>Tether, the world's largest issuer of stable coins, has also

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<v Speaker 1>faced questions about just how stable its stable coins are.

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<v Speaker 1>In twenty twenty one, it paid about sixty million dollars

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<v Speaker 1>to New York and the US Commodity Futures Trading Commission

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<v Speaker 1>to settle allegations of making untrue and misleading claims, including

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<v Speaker 1>the fact that all its coins were backed one to

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<v Speaker 1>one by US dollars at all times. Tether still doesn't

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<v Speaker 1>release audited statements about the reserves that back it's stable coins,

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<v Speaker 1>given these concerns about transparency and reliability. I asked Emily

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<v Speaker 1>how stable coin issuers are supposed to make sure their

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<v Speaker 1>currency lives up to its name.

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<v Speaker 2>Yeah, I mean, it's keeping your reserves in a really

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<v Speaker 2>trusted and secure place. I think the risk is always.

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<v Speaker 2>I mean it's similar to bank runs, right, Like if

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<v Speaker 2>depositors lose confidence in their bank and they all rush

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<v Speaker 2>to take their money out and it's not immediately available,

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<v Speaker 2>that's when you have a bank failure. And stablecoin issuers

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<v Speaker 2>are similar, Like, if the people holding your coin lose

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<v Speaker 2>confidence that you're maintaining the reserves in a safe and

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<v Speaker 2>sound way and that they're actually there and that they

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<v Speaker 2>can actually redeem their money, then they're going to rush

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<v Speaker 2>to redeem. And I think that's one of the big

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<v Speaker 2>concerns is like, Okay, if you have an event like that,

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<v Speaker 2>if you have like the equivalent of a bank run

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<v Speaker 2>on a stable coin issuer, are you going to be

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<v Speaker 2>able to meet those demands and those redemption requests? And

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<v Speaker 2>I think some lawmakers were saying, like, Okay, if circle

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<v Speaker 2>takes off and all of these can consumers have USDC

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<v Speaker 2>and they're holding stable coin balances and something like that,

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<v Speaker 2>happens and circle fails, are we going to bail them out? Like,

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<v Speaker 2>we don't really want to sign up for that. So

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<v Speaker 2>that's kind of one of the concerns.

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<v Speaker 1>And lawmakers have other concerns about stable coins. Report from

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<v Speaker 1>the Financial Action Task Force released in June show that

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<v Speaker 1>most criminal activity happening on cryptocurrency ledgers now involves stable coins.

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<v Speaker 1>Besides the obvious appeal of anonymity that all cryptocurrency offers,

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<v Speaker 1>Emily says, financial criminals like stability too. Well.

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<v Speaker 2>The advantages of stable coins for the traditional market are

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<v Speaker 2>the same for criminal actors, right, Like the price is stable,

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<v Speaker 2>So if I'm making payments, I want the currency that

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<v Speaker 2>I used to be worth the same amount today that

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<v Speaker 2>it was yesterday when I made the payment, So the

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<v Speaker 2>advantages are kind of the same there.

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<v Speaker 1>That's so interesting. So like above above board, financial actors

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<v Speaker 1>like stable coin for the same reason that potentially mortifarious

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<v Speaker 1>actors would like it.

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<v Speaker 3>Yeah, one hundred percent.

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<v Speaker 2>And then on the transparency piece with the blockchain, like

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<v Speaker 2>it's kind of one of those things where it's like, Okay,

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<v Speaker 2>you can see all the transactions and you can see

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<v Speaker 2>the digital wallets that were that were transacting but the

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<v Speaker 2>wallets have these really long names. It's like a bunch

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<v Speaker 2>of letters and numbers, and you're kind of like, okay,

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<v Speaker 2>well who is that? And then you can see all

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<v Speaker 2>the transactions, but you don't necessarily know who's making the transactions.

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<v Speaker 2>And that's why the off ramping is such a big

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<v Speaker 2>kind of conversation for criminals. It's sort of like, Okay,

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<v Speaker 2>if I've got all of this illicit money in my

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<v Speaker 2>cryptocurrency wallet, how am I going to get it out?

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<v Speaker 2>But not tie it to myself? Because as soon as

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<v Speaker 2>I try to transfer it to a bank account, the

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<v Speaker 2>bank knows who I am, and so that's kind of

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<v Speaker 2>like a challenge for them.

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<v Speaker 1>Coming up, we dig into the Genius Act and how

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<v Speaker 1>regulating stable coins could push more companies to start making

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<v Speaker 1>them and using them. With the passage of the Genius Act,

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<v Speaker 1>the US is now officially regulating the cryptocurrency market, well

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<v Speaker 1>one corner of it, anyway. Bloomberg's Emily Mason says, out

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<v Speaker 1>of all the digital assets out there, stable coins were

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<v Speaker 1>a logical place to start.

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<v Speaker 2>I think just like they have a really concrete use

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<v Speaker 2>case that it's kind of clear to see than maybe

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<v Speaker 2>some of the other cryptocurrencies that are used primarily for

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<v Speaker 2>trading activities, and they're more of like it's more of

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<v Speaker 2>an investment vehicle than it is for actually making payments.

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<v Speaker 2>And the Genius Act is very specific. It's for payment

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<v Speaker 2>stable coin issuers. This is for making payments and like

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<v Speaker 2>making payments easier and just better for businesses and financial

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<v Speaker 2>institutions and potentially consumers if that makes sense, though it's

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<v Speaker 2>not super clear why it would in the US.

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<v Speaker 1>Can you break down what exactly the regulation does?

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<v Speaker 2>Yeah, So it kind of creates guidelines around like what

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<v Speaker 2>the reserves need to look like, it needs to be

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<v Speaker 2>backed one to one by short term assets. It establishes

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<v Speaker 2>the OCC as a regulator of stable coin issuers, though

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<v Speaker 2>the issuers can still be regular by either state or

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<v Speaker 2>federal regulators.

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<v Speaker 1>The OCC is the Office of the Controller of the Currency.

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<v Speaker 3>Yeah, and it's like a federal regulator.

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<v Speaker 1>Another thing the Genius Act does is it requires issuers

0:12:11.440 --> 0:12:14.840
<v Speaker 1>to abide by anti money laundering and anti terrorism rules.

0:12:15.320 --> 0:12:17.520
<v Speaker 2>Honestly, it's pretty short, Like that's what's kind of crazy.

0:12:17.559 --> 0:12:19.000
<v Speaker 2>It's like, if you read it, it's like a pretty

0:12:19.000 --> 0:12:20.559
<v Speaker 2>short thing. Those are kind of the main things that

0:12:20.600 --> 0:12:21.479
<v Speaker 2>we've been calling.

0:12:21.200 --> 0:12:24.320
<v Speaker 1>Out though, Yeah, well, why is it important that this

0:12:24.440 --> 0:12:28.200
<v Speaker 1>regulation ensures or tries to ensure that these coins are

0:12:28.280 --> 0:12:31.800
<v Speaker 1>backed by actual assets. The dollar, for example, was once

0:12:31.880 --> 0:12:34.320
<v Speaker 1>backed by gold, but it hasn't been for decades.

0:12:34.800 --> 0:12:35.079
<v Speaker 3>Yeah.

0:12:35.520 --> 0:12:39.280
<v Speaker 2>The banks are regulated super closely by different there's a

0:12:39.280 --> 0:12:41.319
<v Speaker 2>lot of different regulators, the OCC being one of them,

0:12:41.320 --> 0:12:44.679
<v Speaker 2>the FDIC being another one, and then bank deposits are

0:12:44.679 --> 0:12:47.000
<v Speaker 2>also ensured up to two hundred and fifty thousand dollars

0:12:47.000 --> 0:12:50.679
<v Speaker 2>by the FDIC. So even though it's not backed one

0:12:50.679 --> 0:12:53.080
<v Speaker 2>to one by gold, it's kind of got this really

0:12:53.960 --> 0:12:56.960
<v Speaker 2>sturdy infrastructure around it to keep consumers and businesses safe

0:12:56.960 --> 0:12:59.400
<v Speaker 2>and to keep people confident that they can transact in

0:12:59.440 --> 0:13:01.440
<v Speaker 2>the dollar and they're not going to have a problem.

0:13:01.760 --> 0:13:03.079
<v Speaker 3>And stablecoin it's the same thing.

0:13:03.120 --> 0:13:06.400
<v Speaker 2>You know, you need to build this regulatory scaffolding around

0:13:06.440 --> 0:13:08.960
<v Speaker 2>it so that people can use it and feel safe

0:13:08.960 --> 0:13:10.080
<v Speaker 2>and don't get in trouble.

0:13:10.280 --> 0:13:13.720
<v Speaker 1>Who was pushing for this regulation? Who are the legislation's

0:13:13.800 --> 0:13:14.760
<v Speaker 1>main backers?

0:13:15.160 --> 0:13:17.040
<v Speaker 2>I mean the crypto industry of course, And they put

0:13:17.080 --> 0:13:20.160
<v Speaker 2>a lot of money into Trump's campaign, into his inauguration fund.

0:13:20.200 --> 0:13:22.480
<v Speaker 2>They had lots of like flashy parties because they put

0:13:22.520 --> 0:13:26.120
<v Speaker 2>money in for that, so crypto companies. The Trump family

0:13:26.200 --> 0:13:28.320
<v Speaker 2>is kind of like involved in the cryptocurrency industry, so

0:13:28.360 --> 0:13:30.800
<v Speaker 2>they've they've been supporters of it. He and his sons

0:13:30.800 --> 0:13:34.480
<v Speaker 2>founded World Liberty Financial. He stepped down once he became president,

0:13:34.760 --> 0:13:37.920
<v Speaker 2>but World Liberty Financial issues its own stable coin called

0:13:38.000 --> 0:13:41.680
<v Speaker 2>USD one, So they are like heavily involved in this industry,

0:13:41.920 --> 0:13:42.520
<v Speaker 2>in this space.

0:13:42.800 --> 0:13:46.400
<v Speaker 1>According to the Bloomberg Billionaire's Index, crypto ventures added at

0:13:46.480 --> 0:13:49.360
<v Speaker 1>least six hundred and twenty million dollars to Donald Trump's

0:13:49.360 --> 0:13:53.000
<v Speaker 1>fortune as of early July. That's one reason critics of

0:13:53.040 --> 0:13:57.520
<v Speaker 1>the Genius Act, including Massachusetts Senator Elizabeth Warren, opposed the law.

0:13:58.000 --> 0:14:01.400
<v Speaker 1>She was also concerned about technology companies issuing their own

0:14:01.440 --> 0:14:02.240
<v Speaker 1>stable coins.

0:14:02.520 --> 0:14:05.800
<v Speaker 2>So someone like a Meta or Elon Musk with X

0:14:05.840 --> 0:14:07.560
<v Speaker 2>like he could issue a stable coin and kind of

0:14:07.640 --> 0:14:10.480
<v Speaker 2>turn these platforms into almost de facto bank accounts. And

0:14:11.080 --> 0:14:14.199
<v Speaker 2>her concern was if people are storing significant amount of

0:14:14.240 --> 0:14:17.360
<v Speaker 2>money as stable coin balances, like can we really trust

0:14:17.400 --> 0:14:20.320
<v Speaker 2>these companies to keep that money safe and secure, and

0:14:20.400 --> 0:14:22.960
<v Speaker 2>like are people kind of going to land in trouble?

0:14:23.480 --> 0:14:28.080
<v Speaker 1>Wall Street and traditional financial institutions have their own worries.

0:14:28.080 --> 0:14:30.040
<v Speaker 2>There's a lot of concern from the banking industry that

0:14:30.120 --> 0:14:32.640
<v Speaker 2>if you can hold money as a stable coin balance

0:14:32.640 --> 0:14:34.840
<v Speaker 2>and you're earning four percent, then you're going to take

0:14:34.840 --> 0:14:37.120
<v Speaker 2>your money out of the banking system, and then that's

0:14:37.440 --> 0:14:40.360
<v Speaker 2>going to weaken the banking industry pretty significantly. You know,

0:14:40.480 --> 0:14:45.160
<v Speaker 2>if businesses can hold stable coin balances and that's a

0:14:45.200 --> 0:14:47.440
<v Speaker 2>better way for them to transact, that's a better way

0:14:47.480 --> 0:14:50.360
<v Speaker 2>for them to conduct business payments, then they're going to leave.

0:14:50.680 --> 0:14:52.200
<v Speaker 2>That's something that they want to be ahead of. They

0:14:52.200 --> 0:14:54.680
<v Speaker 2>want to be sure that they're offering a comparable product.

0:14:54.800 --> 0:14:57.240
<v Speaker 1>Secretary Busson has also talked about the fact that this

0:14:57.320 --> 0:15:01.320
<v Speaker 1>could that the increased use of or backed stable coins

0:15:01.360 --> 0:15:04.040
<v Speaker 1>could increase demand for US treasuries and the US dollar.

0:15:04.360 --> 0:15:06.680
<v Speaker 2>Yeah, so, I mean he's excited about this because it

0:15:06.760 --> 0:15:09.000
<v Speaker 2>means that more people are buying treasuries to back the

0:15:09.000 --> 0:15:11.280
<v Speaker 2>stable coins. And I think the other thing that people

0:15:11.480 --> 0:15:14.680
<v Speaker 2>are excited about is sort of that this is something

0:15:14.680 --> 0:15:18.440
<v Speaker 2>that can help keep the dollar really relevant and strong

0:15:18.480 --> 0:15:21.120
<v Speaker 2>currency around the world, because you'll have people in all

0:15:21.120 --> 0:15:23.960
<v Speaker 2>of these other countries that want dollar access using stable

0:15:24.000 --> 0:15:25.680
<v Speaker 2>coin as a means for transacting.

0:15:26.000 --> 0:15:28.880
<v Speaker 1>Big picture, what does this all mean for consumers.

0:15:29.280 --> 0:15:31.920
<v Speaker 2>I think it's like it so remains to be seen,

0:15:32.560 --> 0:15:35.760
<v Speaker 2>especially in the US, just because our payment systems today

0:15:35.840 --> 0:15:40.520
<v Speaker 2>like work pretty well, so whether people are actually using

0:15:40.560 --> 0:15:43.920
<v Speaker 2>stable coin to check out is kind of remains to

0:15:43.920 --> 0:15:46.680
<v Speaker 2>be seen. Merchants would maybe really like that to happen

0:15:46.720 --> 0:15:49.840
<v Speaker 2>because accepting credit cards is expensive. There's a couple of

0:15:49.840 --> 0:15:52.360
<v Speaker 2>caveats to that though. For example, if you pay with

0:15:52.400 --> 0:15:54.840
<v Speaker 2>stable coin, it's not a credit product, you have to

0:15:54.880 --> 0:15:57.360
<v Speaker 2>have the money immediately available. I love paying with my

0:15:57.400 --> 0:15:59.760
<v Speaker 2>credit card because you know, I haven't been paid yet

0:15:59.760 --> 0:16:02.880
<v Speaker 2>and it's a credit and iron points. Stable Cooin hasn't

0:16:02.880 --> 0:16:05.960
<v Speaker 2>really replicated any of that yet, and there's a lot

0:16:06.000 --> 0:16:09.040
<v Speaker 2>more stable coin linked cards coming to market, So Visa

0:16:09.360 --> 0:16:11.440
<v Speaker 2>announced a partnership with Striped to kind of enable that

0:16:11.680 --> 0:16:13.960
<v Speaker 2>so you can actually then start spending your stable coin

0:16:14.000 --> 0:16:16.080
<v Speaker 2>balance as you would with any other card.

0:16:18.320 --> 0:16:21.320
<v Speaker 1>What are the biggest open questions that you still have

0:16:21.720 --> 0:16:25.400
<v Speaker 1>about what this regulation might mean for the stable coin

0:16:25.440 --> 0:16:28.920
<v Speaker 1>industry and about the use of stable coins moving forward.

0:16:29.040 --> 0:16:31.160
<v Speaker 3>I'm still super interested in the adoption question.

0:16:31.480 --> 0:16:33.840
<v Speaker 2>And then the other piece is this interoperability piece, Like

0:16:33.840 --> 0:16:35.840
<v Speaker 2>if we have all of these different coins that are

0:16:35.840 --> 0:16:39.160
<v Speaker 2>being issued. What is the mechanism for making them all

0:16:39.200 --> 0:16:41.680
<v Speaker 2>work together? Right now, I have a dollar, You have

0:16:41.720 --> 0:16:43.960
<v Speaker 2>a dollar, someone else over there has a dollar, and

0:16:44.160 --> 0:16:45.920
<v Speaker 2>we can all transact pretty easily.

0:16:46.200 --> 0:16:47.720
<v Speaker 3>What does that look like for stable coin?

0:16:47.960 --> 0:16:49.960
<v Speaker 2>It could also be on other blockchains, so you have

0:16:50.000 --> 0:16:53.720
<v Speaker 2>to figure out ways to make those transactions all work.

0:16:53.920 --> 0:16:56.320
<v Speaker 2>The big advantages of the card networks is I can

0:16:56.360 --> 0:16:58.840
<v Speaker 2>walk into any store and I'm really confident that my

0:16:58.880 --> 0:17:00.840
<v Speaker 2>card is going to be accepted because everyone takes Visa

0:17:00.880 --> 0:17:04.320
<v Speaker 2>and MasterCard. If I'm walking in with a stable coin balance,

0:17:05.160 --> 0:17:08.160
<v Speaker 2>it's probably today impossible that I'll be able to Yeah.

0:17:07.960 --> 0:17:10.119
<v Speaker 1>I was gonna say, like, can you do that anywhere?

0:17:10.240 --> 0:17:11.600
<v Speaker 3>No, I don't think you can do that anywhere.

0:17:11.640 --> 0:17:14.720
<v Speaker 2>But like, that's why Visa has stable cooin linked cards

0:17:14.720 --> 0:17:16.439
<v Speaker 2>so that I can spend my stable coin balance with

0:17:16.440 --> 0:17:19.439
<v Speaker 2>a Visa card, and Visa becomes kind of an and

0:17:19.600 --> 0:17:23.199
<v Speaker 2>MasterCard becomes the acceptance brand for stable coin, and so

0:17:23.520 --> 0:17:25.880
<v Speaker 2>they're kind of still trying to figure out what does

0:17:25.880 --> 0:17:28.520
<v Speaker 2>that look like, Like how do you build that network

0:17:28.560 --> 0:17:29.320
<v Speaker 2>of acceptance.

0:17:36.320 --> 0:17:38.840
<v Speaker 1>This is the big take from Bloomberg News. I'm Sarah

0:17:38.840 --> 0:17:41.560
<v Speaker 1>Holder to get more from the big Take and unlimited

0:17:41.600 --> 0:17:45.320
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0:17:45.320 --> 0:17:49.480
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0:17:49.680 --> 0:17:52.199
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0:17:55.400 --> 0:17:57.400
<v Speaker 1>Thanks for listening. We'll be back tomorrow