Hayes Flags Fed Report for Potential UST-Backed CBDC Mechanism

Arthur Hayes highlights this week's H.4.1 report to check for Japanese bond repurchase agreements, suggesting a path for Fed currency creation using foreign collateral.

Woofun AI reports that BitMEX co-founder Arthur Hayes emphasized the significance of this week's Federal Reserve H.4.1 report. He indicated that monitoring this data could reveal whether the Japanese Ministry of Finance executed repurchase agreements on government bonds in exchange for dollars, subsequently selling those bonds to acquire yen. Hayes further noted that if the U.S. Treasury Secretary manages to raise the counterparty limit, the Federal Reserve might utilize these Japanese Ministry of Finance bonds as collateral to issue currency.