3 ms·
> Yes, a true "stablecoin" would be 100% backed by deposits in a known and verifiable money market account and able to be withdrawn into USD or other real curre
by omnibrain 4y ago
> Yes, a true "stablecoin" would be 100% backed by deposits in a known and verifiable money market account and able to be withdrawn into USD or other real currency on demand at a 1:1 ratio.
But where would be the money in that?
- lokedhs 4y agoYou could invest it in bonds issued by the central bank for the currency you're tied to. But that would only provide a stable income with essentially zero risk (since your binds are denominated in the same currency you're linking to). But that won't be enough money for these people, of course
- tdhoot 4y agoThat's not without risk -- you might have to sell the bonds at a loss if there is a run on the currency.