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It is obscenely disingenuous, almost fraud, to put "USD" in the name of the coin. That's not what it is. The ability to convert to/from the coin is entirely bas
by Fej 8y ago
It is obscenely disingenuous, almost fraud, to put "USD" in the name of the coin. That's not what it is. The ability to convert to/from the coin is entirely based on the good graces of the issuer, and any regulators in the relevant jurisdiction(s). People see "USD" and think it's a dollar. Stablecoin authors know this.
Unlike more seedy exchanges, Coinbase is based in a state with useful regulators (in this case, the US). Like others have said here, expect them to stomp the shit out of this.
Unrelated: has anyone audited the contract?
- umanwizard 8y agoThe "dollars" in my bank account are not dollars either; they are something like a WellsFargoCoin. (Granted, there's a huge difference, since WellsFargoCoin is backed by the FDIC... (Edit: maybe there is not so much of a difference; see the reply by omarchowdhury. I really don't know.))
- omarchowdhury 8y agoI would assume Circle (backed by Goldman Sachs) is keeping the reserve dollars in segregated, FDIC insured bank accounts. Would be out of character and expected policy for a U.S. operation to not to.
- ur-whale 8y ago>is backed by the FDIC Isn't FDIC backing capped?
- blhack 8y agoIt's pegged to the USD, isn't it?
- ur-whale 8y ago>It's pegged to the USD, isn't it? That's the intent. They may vastly over-estimate their ability to maintain the peg.