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Doing a stablecoin to replace something like the USD is an extremely difficult problem. Reserve.org is one company which understands the gravity of the issue an
by martin1975 5y ago
Doing a stablecoin to replace something like the USD is an extremely difficult problem. Reserve.org is one company which understands the gravity of the issue and is committed to producing a stablecoin for anyone, worthy enough to replace the USD.
- tfehring 5y agoAt a glance it looks like that's materially the same mechanism that was used by IRON [0], which blew up last week after they had to mint too many of the stabilizing tokens to try to retain the USD peg. Am I missing something? [0] https://docs.iron.finance https://docs.iron.finance
- JumpCrisscross 5y ago> a stablecoin to replace something like the USD is an extremely difficult problem It's also a solved one. There is one party on the planet that can credibly solve this problem, and it's the Fed. Walter Bagehot wrote about this effectively in 1873 [1], it's still comprehensible, and it is to the Federal Reserve Act what the Declaration is to the Constitution. Every U.S. dollar stablecoin issued by someone who is not (a) the Fed and (b) fully reserved is trying to solve the impossible trinity [2]. [1] https://en.wikipedia.org/wiki/Lombard_Street:_A_Description_of_the_Money_Market https://en.wikipedia.org/wiki/Lombard_Street:_A_Description_... [2] https://en.wikipedia.org/wiki/Impossible_trinity https://en.wikipedia.org/wiki/Impossible_trinity
- deleted 5y ago[deleted]
- dabed 5y agoCould you elaborate about how does the impossible trinity follows from (a) and (b)?