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The situation has changed. The US is now leaning pro-crypto and they're also for sale.

by wmf 1y ago

Onavo 1y ago
And yet USDC has a sanctions mechanisms built in.
sroussey 1y ago
Other countries have controls on currency movements inside and outside their borders.
- jcfrei 1y ago
  Blockchains (due to constantly changing validators, nodes, etc.) are much harder to shut down than some dedicated service. I think the current administration understands that loose stablecoin regulation further cements US dollar hegemony, curtails other countries attempts to deprive their citizens of payment and savings alternatives and creates more demand for US treasuries (because that's where stablecoin reserves end up). It's a win-win for the US government and bad for governments with a track record of poor fiscal and monetary policy.
  - foobarqux 1y ago
    In practice this isn't true; very few services (in terms of $ spent/earned) are purely virtual and have no physical presence in the country.
  - martin8412 1y ago
    You don’t need to shut down the actual blockchain network participants to kill it for your citizens.
  - fruitworks 1y ago
    Not if the blockchain is developed and administered by a single company!
  - Imustaskforhelp 1y ago
    To be honest, a nitpick that i have in this comment is that there are other stablecoins aside from us dollar but most people don't seem to use it. There are gold tokens which I genuinely feel like it can be the best thing ever. Because bitcoin is "digital gold", lmao.... I laugh a lot on this statement nowadays because we genuinely have trustworthy way of having "digital gold" and we don't use that as much as there is hype about bitcoin... But yes currently, it might benefit the us govt. overall
- wmf 1y ago
  Which Tempo will just ignore.
jimkleiber 1y ago
Is the US leaning pro-crypto or the current administration in power? My guess is that it's like saying the US is leaning towards tariffs, which may or may not be stable.
- root_axis 1y ago
  You can be assured that future administrations will not be turning off anyone's money spigot, now that the door is open it's impossible to close.
  - jimkleiber 1y ago
    Hmm, I think plenty of administrations (or rather, legislative bodies, if we actually want to get back to the Constitution) have acted in a way that made it less profitable for businesses to operate, so I think it's very possible to close.
    - root_axis 1y ago
      Cryptocurrency regulation isn't a cause that most people are passionate about in either direction, so reeling it back in won't afford politicians any popular support. All it can do is create rich enemies who spend lots of money to attack political threats. There's simply no incentive to crack down on it.
      - jimkleiber 1y ago
        No incentive? Besides a ton of fraud and regulation skirting? Not all crypto breaks laws but a lot does
- baggachipz 1y ago
  It's clearly the current administration, seeing as how they profited immensely by offering their own personal shitcoins. I don't think public sentiment has changed much.
foobarqux 1y ago
I think he's talking about foreign governments control on monetary policy, which is essential for managing the economy. Even a poorly run government will insist on retaining control over monetary policy and it provides a necessary forced coordination mechanism for allowing the economy to recover given that it's a prisoner's dilemma otherwise, with every individual preferring to opt out of taking a loss. This end-run around foreign government monetary control has been touted by Stripe executives as one of the main selling points for USD stablecoins but I don't see how foreign governments don't clamp down on this is in the same ways the clamp down on other uses of USD in the country; most monetary transfers have some physical presence or touchpoints the government can control. More importantly the US itself is eventually going to come to the conclusion that it does not want people holding US dollars for similar reasons: it also loses control over monetary policy, with excessive inflows un-intuitively leading either to unemployment or excessive debt (c.f. Michael Pettis) That said, it's possible stablecoin networks succeed for other reasons, particularly having a widely-accepted "API" that is developed at the pace of modern technology companies instead of laggard banks.
- wmf 1y ago
  The US used to have a policy against dollarizing other countries but I think that's gone now.
thrance 1y ago
If by "pro-crypto" you mean the current president and his wife both did crypto-scams on his first day of presidency, then yeah. Other than that, I wouldn't base anything off of a Trump promise.

The situation has changed. The US is now leaning pro-crypto and they're also for sale.

by wmf 1y ago

The situation has changed. The US is now leaning pro-crypto and they're also for sale.

Onavo 1y ago

And yet USDC has a sanctions mechanisms built in.

sroussey 1y ago

Other countries have controls on currency movements inside and outside their borders.

jcfrei 1y ago
Blockchains (due to constantly changing validators, nodes, etc.) are much harder to shut down than some dedicated service. I think the current administration understands that loose stablecoin regulation further cements US dollar hegemony, curtails other countries attempts to deprive their citizens of payment and savings alternatives and creates more demand for US treasuries (because that's where stablecoin reserves end up). It's a win-win for the US government and bad for governments with a track record of poor fiscal and monetary policy.
- foobarqux 1y ago
  In practice this isn't true; very few services (in terms of $ spent/earned) are purely virtual and have no physical presence in the country.
- martin8412 1y ago
  You don’t need to shut down the actual blockchain network participants to kill it for your citizens.
- fruitworks 1y ago
  Not if the blockchain is developed and administered by a single company!
- Imustaskforhelp 1y ago
  To be honest, a nitpick that i have in this comment is that there are other stablecoins aside from us dollar but most people don't seem to use it. There are gold tokens which I genuinely feel like it can be the best thing ever. Because bitcoin is "digital gold", lmao.... I laugh a lot on this statement nowadays because we genuinely have trustworthy way of having "digital gold" and we don't use that as much as there is hype about bitcoin... But yes currently, it might benefit the us govt. overall
wmf 1y ago
Which Tempo will just ignore.

jimkleiber 1y ago

Is the US leaning pro-crypto or the current administration in power? My guess is that it's like saying the US is leaning towards tariffs, which may or may not be stable.

root_axis 1y ago
You can be assured that future administrations will not be turning off anyone's money spigot, now that the door is open it's impossible to close.
- jimkleiber 1y ago
  Hmm, I think plenty of administrations (or rather, legislative bodies, if we actually want to get back to the Constitution) have acted in a way that made it less profitable for businesses to operate, so I think it's very possible to close.
  - root_axis 1y ago
    Cryptocurrency regulation isn't a cause that most people are passionate about in either direction, so reeling it back in won't afford politicians any popular support. All it can do is create rich enemies who spend lots of money to attack political threats. There's simply no incentive to crack down on it.
    - jimkleiber 1y ago
      No incentive? Besides a ton of fraud and regulation skirting? Not all crypto breaks laws but a lot does
baggachipz 1y ago
It's clearly the current administration, seeing as how they profited immensely by offering their own personal shitcoins. I don't think public sentiment has changed much.

foobarqux 1y ago

I think he's talking about foreign governments control on monetary policy, which is essential for managing the economy. Even a poorly run government will insist on retaining control over monetary policy and it provides a necessary forced coordination mechanism for allowing the economy to recover given that it's a prisoner's dilemma otherwise, with every individual preferring to opt out of taking a loss. This end-run around foreign government monetary control has been touted by Stripe executives as one of the main selling points for USD stablecoins but I don't see how foreign governments don't clamp down on this is in the same ways the clamp down on other uses of USD in the country; most monetary transfers have some physical presence or touchpoints the government can control. More importantly the US itself is eventually going to come to the conclusion that it does not want people holding US dollars for similar reasons: it also loses control over monetary policy, with excessive inflows un-intuitively leading either to unemployment or excessive debt (c.f. Michael Pettis) That said, it's possible stablecoin networks succeed for other reasons, particularly having a widely-accepted "API" that is developed at the pace of modern technology companies instead of laggard banks.

wmf 1y ago
The US used to have a policy against dollarizing other countries but I think that's gone now.

thrance 1y ago

If by "pro-crypto" you mean the current president and his wife both did crypto-scams on his first day of presidency, then yeah. Other than that, I wouldn't base anything off of a Trump promise.