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Here we go again. This finally links crypto into real economy. The replay of Subprime mortgage crisis (2007-2010) -> The Great Recession (2007-2009) will follo

• andsoitis 1y ago
  There's more nuance to this. JPMorgan is reported to considering accepting stablecoins as collateral to loans. Stablecoints are pegged to assets such as the US dollar, Unlike cryptocurrencies such as bitcoin, which are not backed by an underlying asset. Like most US banks, JPMorgan does not keep cryptocurrencies on its balance sheet. It should also be noted that while JPMorgan has been against cryptocurrencies, it has been active in digital assets more broadly and developed one of the first bank-backed digital coins in 2019.
  • nabla9 1y ago
    Stablecoin is a clever way to add extra layer of counterparty risk and fees over regular assets. It's just extra risk+cost over direct asset as collateral. Counterparty risks being realized were the reason why The Subprime Crisis turned into banking crisis. Crypto layer is just modern version of CDO.
    • andsoitis 1y ago
      > regular assets What, in your mind, are regular assets? Or, maybe more clarifyingly, what is a non-regular asset in this context?
      • nabla9 1y ago
        In this discussion it's anything regulated that can be bought directly without using "crypto" between them.