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A better term is "fiatcoin". There is no such thing as a "stablecoin". What mechanisms exist to ensure that the "stablecoin" maintains its peg?
by sparkie 8y ago
A better term is "fiatcoin". There is no such thing as a "stablecoin". What mechanisms exist to ensure that the "stablecoin" maintains its peg?
- village-idiot 8y agoCurrently, none. If you wanted to do it right, the correct way would be to treat so-called stablecoins like a bank and audit them accordingly, except with a 100% capital requirement. It’s highly entertaining to me how many issues with cryptocurrencies have to be resolved with classical financial instruments and regulatory processes. It’s almosf as if these systems were slowly built over a few centuries and are actually pretty good at what they do, and that you can’t just throw computers at the problem and pretend that you know better.