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I don't think you understand Dai. It's pegged to USD, meaning that it tries to be as stable as the USD, but is not actually backed by USD. KYC/AML issues are no
by berberous 8y ago
I don't think you understand Dai. It's pegged to USD, meaning that it tries to be as stable as the USD, but is not actually backed by USD. KYC/AML issues are no different than those that apply to BTC (e.g., if you try to cash out BTC or Dai via a U.S. exchange for USD, you will need to pass U.S. KYC).
- drcode 8y agoThis is not true, as far as I understand: The vast majority of DAI is backed by fiat currencies via a complex mechanism involving multiple outside parties. The earliest version of DAI was envisioned as being 100% unbacked, but the collateral requirements to make that feasible ended up being prohibitive.
- wegwerfbenutzer 8y agoNo, currently DAI is backed by Ethereum. You only need to spend one minute on their website or subreddit to get this information. I follow them for a long time and never even heard of them being backed by fiat. They only try to use virtual goods like virtual gold, cryptocurrencies etc. as collateral.
- drcode 8y agoVirtual gold is not "backed by ethereum" it is backed by gold. These are obviously the third parties I'm talking about.
- RexetBlell 8y agoDai is not backed by Ethereum. Dai is backed by Ether.
- rthomas6 8y agoOkay Mr. Pedant. Actually Dai isn't backed by either one. It's backed by an ERC-20 token called Pooled Ether.
- rthomas6 8y agoNo, you may be thinking of something else. DAI is backed by Ethereum held in a smart contract. It's not collateralized by fiat currencies right now.