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0 pointssolumos6mo ago0 comments

Because you can transfer stablecoins to an end-user without taking custody of it, and that end-user can redeem it in their local market without the local + US-based bank having to talk. It’s faster and cheaper.

Stablecoins are a sort of “glue” between global banking infrastructure that otherwise would be difficult to set up as a provider (due to regulation), slow (due to bank technology for global payments being slow), and opaque (due to the shortcomings of global payments between financial institutions).

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nathan_compton6mo ago

> due to regulation

If the goal here is to overcome regulation isn't all this threatened by the possibility of new regulation that recaptures this behavior?

saulpw6mo ago

Eventually. But there's a period of time until that's the case, which makes it worthwhile. Kind of a regulatory arbitrage in time.

fruitworks6mo ago

The controller of the stablecoin has full custody, whether or not regulators realize it.

The conventional system is slow, insecure and does not interoperate well because of regulation.

This whole scheme is just dressing up a centralized payment provider as a cryptocurrency to avoid regulation for a short period of time.

rank06mo ago

How will you redeem your stable coin without some interaction with and approval from a bank? Where do you think the stable coin issuers hold their dollars?

I mean FFS the dang tokens are literally pegged to the dollar.

Ekaros6mo ago

Stable coin is digital IOU. Where issuer makes the rules.

I never got the idea how for that reason there is any guarantees that you can get money out in those less served locations.

rank06mo ago

Even in ANY jurisdiction you’d presumably need a contractual agreement with the issuer. IIRC only certain entities may redeem tether/USDC for cash. You at a minimum need an account! Not like I can just send those companies my tokens and get straight cash.

The whole thing is just asinine. The killer use case for crypto is dodging laws & regulation. Not even judging because that’s REAL utility!

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0 pointssolumos6mo ago0 comments

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nathan_compton6mo ago

> due to regulation

If the goal here is to overcome regulation isn't all this threatened by the possibility of new regulation that recaptures this behavior?

saulpw6mo ago

Eventually. But there's a period of time until that's the case, which makes it worthwhile. Kind of a regulatory arbitrage in time.

fruitworks6mo ago

The controller of the stablecoin has full custody, whether or not regulators realize it.

The conventional system is slow, insecure and does not interoperate well because of regulation.

This whole scheme is just dressing up a centralized payment provider as a cryptocurrency to avoid regulation for a short period of time.

rank06mo ago

How will you redeem your stable coin without some interaction with and approval from a bank? Where do you think the stable coin issuers hold their dollars?

I mean FFS the dang tokens are literally pegged to the dollar.

Ekaros6mo ago

Stable coin is digital IOU. Where issuer makes the rules.

I never got the idea how for that reason there is any guarantees that you can get money out in those less served locations.

rank06mo ago

The whole thing is just asinine. The killer use case for crypto is dodging laws & regulation. Not even judging because that’s REAL utility!

1 more reply

j / k navigate · click thread line to collapse