Re:Brazil's government-run payments system has become dominant
by dguest on Wednesday April 09, 2025 @07:35AM
(#43631009)
> The Treasury is the machine you're looking for... In a sense, yes dollars are "destroyed" in that they leave that monetary system.
So are you saying there's an procedure where the US treasury takes USD out of circulation, and the ECB introduces the equivalent in Euro, according to some official exchange rate? How do they set the exchange rate?
Re:Brazil's government-run payments system has become dominant
by danielmarkbruce on Wednesday April 09, 2025 @01:16PM
(#43634658)
No, of course there isn't. The explanation is absolutely ridiculous.
Go ask chatgpt, it will explain it quite well.
Re:Brazil's government-run payments system has become dominant
by irjustin on Wednesday April 09, 2025 @09:05PM
(#43639645)
> The explanation is absolutely ridiculous.
You'll need to provide more constructive feedback. Or are you suggesting that it's not "destroyed" and that the origin country can freely transfer money without discounting its books?
Re:Brazil's government-run payments system has become dominant
by danielmarkbruce on Wednesday April 09, 2025 @10:19PM
(#43640018)
There are so many problems with your explanation it's hard to know where to start. Just ask ChatGPT to explain it and go back and forth until it's clear.
Really, it's bad form to comment on something technical where you are just miles out of your depth.
Re:Brazil's government-run payments system has become dominant
by danielmarkbruce on Wednesday April 09, 2025 @01:15PM
(#43634644)
This is very very wrong. Sheesh. Stop.
If you drill far enough... well anyway
> I don't know of any machine where dollars go in one side, are destroyed, and euros are created on the other side.
The Treasury is the machine you're looking for. And the wire transfer, SWIFT, usually, is the tool of choice. In a sense, yes dollars are "destroyed" in that they leave that monetary system. Banks like BoA hold a ledger with the country's treasury which gets discounted during the outflow.
So euros are then credited to whatever institution you transferred it to.
This is why places like HSBC, CITI have free transfers for intra-bank but you still pay $15 for the same via wire transfer? Why would you ever want to do that? beats me, but the point is you can and it has a very real affect on the system other than some internal database going +/-.
But in the end, it's the country's treasury credit/debiting any institution and then just... printing? when it wants? but other countries... m1... foreign debt.
so yea, turtles.