Seigniorage

And monetary control is not limited to interest rates and emergency lending.

There is also something economists call Signiorage.

Signiorage refers, broadly, to the economic benefit an issuer receives from creating money.

Consider a banknote worth $100.

Producing the physical note costs only a small fraction of its face value.

It's cents above a dollar.

So there's a tiny fee to purchase a stable coin, the stable coin that's backed by dollars, and that's called seniorage.

Seniorage is one of the primary funding sources for the Federal Reserve.

It's how the Federal Reserve makes money, stays independent, and doesn't have to rely on the Treasury for funding.

That spread, that seniorage, is kept by the issuer.