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One is backed by the US government, but isn't able to be used on chain. One is backed by a bank account, and is able to be used on chain. Assuming the organiza
by Raidion 5y ago
One is backed by the US government, but isn't able to be used on chain.
One is backed by a bank account, and is able to be used on chain.
Assuming the organization behind it appears to be good for the 1/1 USD/USDC exchange at all times that system works, but stuff gets weird if that peg ever moves.
- dataflow 5y agoThe "chain" isn't a Thing that somehow changes the nature of whatever it records though, right? If I ran a bank and wrote people's balances on bamboo, and executed transfers via carrier pigeons, that wouldn't suddenly change the currency, right? The government backing also seems beside the point - even for non-FDIC-insured entities, holding someone's money to give it back to them later makes their money become backed by you, but doesn't change the currency.