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> The five countries want all stablecoins to be pledged at a ratio of 1:1 with fiat currency, with reserve assets denominated in the euro or other currencies of
by donatj 6y ago
> The five countries want all stablecoins to be pledged at a ratio of 1:1 with fiat currency, with reserve assets denominated in the euro or other currencies of EU members states, and deposited in an EU-approved institution
So either backed in whole is fine, and not backed at all is fine? But not partially backed? No room for a middle ground? Seems silly, and mindless.
Yet banks, whose entire business is partially backed fiat money are kosher? Almost seems like bias towards old businesses. I have nothing against banks but this smells kinda like big-bank flexing it’s muscles to push out competition.
- londons_explore 6y agoBanks (and their customers) get government protection in return for following a very extensive set of restrictions about how they can run their business.
- buran77 6y agoIf any "cryptocurrency institution" is under the same scrutiny as a regular bank then it may get the same conditions. Otherwise most people want currency that they can use anywhere ideally also without the use of any tech, that is stable, and "chaperoned" by institutions that are under some pretty intense supervision (all things considered).
- donatj 6y agoBut why is there no room for middle ground? If I’m personally fine with the risk/reward balance of non-protected partially backed finance, why is it not acceptable?
- kasperni 6y agoLots of people are fine with the risk/reward balance of using recreational drugs, driving without a seatbelt, working as a sex worker, and tons of other things. And somehow that's not acceptable.
- donatj 6y agoTwo of the three on that list are legal in at least one of the countries involved. Moreover potential major bodily harm versus potential loss of savings don’t seem directly comparable.
- kasperni 6y agoFrom the stories I've read about people losing their entire life savings. It sounds as it is a deeply traumatic event. Which ranks up there with bodily harm, losing relatives, ect. And one which often has a permanent effect on the reminder of their life.
- jqpabc123 6y agoMost likely, because the only logical purpose of a "middle ground" is to create the illusion of financial backing that doesn't exist or can't be easily verified to exist. In other words, it's still a financial deception --- commonly known as a "scam". Attempting to sell part of a bridge that you may or may not own is still an illegal scam in most jurisdictions even though some may be "fine with it".