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The price of crypto coins (bitcoin, etc) is quite volatile. Stablecoins allow you to price products and services without caring about volatility of the currenc

• toomuchtodo 3y ago
  This stablecoin competes with dollars, not crypto. It is a solution looking for a problem. Why would one store value in it instead of an FDIC insured deposit account or a money market account composed of safe government securities? It has no guarantees in the event of an unwinding and does not earn interest. If a stablecoin looks like a dollar, it should be regulated like a dollar, not crypto. Paypal continues to avoid being regulated as a bank; unsophisticated consumers don't need to take on more risk for Paypal and Paxos' benefit.
  • ender341341 3y ago
    I think it's more of an exchange medium, like I have a bunch of bitcoins but you don't want to take the risk of bitcoins on so you make me convert to a stablecoin where you can then convert it to usd at pretty much whatever time you want. but you're right it's mostly a solution in search of a problem, you're losing the 'make distrubuted untrusted sources trustable with lots of math/polution' property that crypto claims to solve and with a classic bank with lots of extra math/polution when a strong system of money transfers for USD already exists with a fraction of the computational/polution cost.
  • Kirby64 3y ago
    It’s an exchange medium exactly like a money market account, though. Just like most brokerages don’t just let you have “cash” in your account, you instead have a cash equivalent in the form of a cash-adjacent money market fund so you can perform trades immediately.
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