4 ms·
I have more confidence that USDC (a stablecoin created by Coinbase and Circle) is fully backed. However, I'm not sure "fully backed" means what most people thi
by wcoenen 5y ago
I have more confidence that USDC (a stablecoin created by Coinbase and Circle) is fully backed.
However, I'm not sure "fully backed" means what most people think it means. If for every 1 USDC there is 1 USD on a bank account, that doesn't mean there are stacks of USD sitting in a vault somewhere. It only means that the bank has a liability towards the account holder on their books, and hopefully that same bank has a reasonable balance of their assets and liabilities.
- jkhdigital 5y agoReasonable balance of capital to assets, you mean. Bank capital is what makes account holders whole when the value of the bank’s assets takes an unexpected hit.