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In that case, why not hold dollars? Regardless, the curious/frightening thing about these stablecoins is what tf is going on in their "central bank" ops room t
by dalbasal 5y ago
In that case, why not hold dollars?
Regardless, the curious/frightening thing about these stablecoins is what tf is going on in their "central bank" ops room to stabilize them.
- makomk 5y agoThere's no such thing as just holding dollars when operating at this kind of billion-dollar scale. Even if you could, say, find a bank that would let you just keep that amount in an account with them, the bank would have to do the same things behind the scenes (along with, typically, some riskier stuff) in order to back those dollars. It just isn't a meaningful concept.
- dalbasal 5y agoExactly, sort of, lol. That's why institutions that do this are usually banks. This isn't just a large company holding liquid assets. These are reserves backing what is, mechanically, a USD account. IDK what the explicit promises, if any, exist. Either way, there can be a run. This is banking, not business.