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It is the most held stablecoin for accounts outside of the United States.
by ipnon 5y ago
It is the most held stablecoin for accounts outside of the United States.
- washedup 5y agoThis is an interesting point from SEC's perspective... how can they manage that? Would the solution be to simply ban it's use in the United States (both Tether and Bitfinex)?
- ipnon 5y agoYes because the United States only has jurisdiction for United States residents. However the United States is the most influential country for financial regulations so we will see some knock on effects.
- thehappypm 5y ago"most held stablecoin" doesn't really answer the question, though. Why hold stablecoins at all? If you hold actual USD in a bank account, you're trusting your bank. If you hold USDT you're trusting that Tether Ltd stays solvent. I understand there's not always so much trust in banks, but trusting this shady Tether Ltd company feels absolutely bonkers. Even buying Bitcoin feels safer!
- ipnon 5y agoPeople hold stablecoins so they can use the practical equivalent of a United States dollar "on chain." Ask your local bank to let you deposit your savings account into Aave or Yearn and you're going to be shown the door. In order to use the smart contracts on the blockchain you first need to bridge your "real world" funds to the chain by using a service like Coinbase. Coinbase will take your USD and give you Ether or a stablecoin like USDC in exchange. You can use either of those assets on chain in smart contracts. To answer your question as directly as possible, people hold stablecoins because they want to use USD in smart contracts.