4 ms·
USDC almost lost a good chunk of its reserve backing when SVB went bust. It was only the bailout that saved it. They had $3 billion of their reserves there. Wh
by graeme 3y ago
USDC almost lost a good chunk of its reserve backing when SVB went bust. It was only the bailout that saved it. They had $3 billion of their reserves there.
When you use regular Eurodollars you only need to trust your bank and you may have deposit insurance. With USDC you need to trust:
* Circle
* Your exchange
* Your own security
The latter generally isn't a factor with fiat, as transactions are reversible
- from 3y agoYes, there are risks when using USDC that are not present when using the traditional banking system. My point is that the proposed digital dollar would not offer any benefits over the regular banking system to its users (except saving wire transfer fees maybe?), and to me appears like it would not even handle the edge case of servicing the "unbanked" any better than banks already do.