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> You trust your stablecoin's issuer that they hold enough fiat in reserve to match the coin? You might as well trust your bank stablecoin issuers are for all
by baq 1y ago
> You trust your stablecoin's issuer that they hold enough fiat in reserve to match the coin? You might as well trust your bank
stablecoin issuers are for all intents and purposes banks.
they'll try very hard to stop anyone from calling them that, but in essence, they give you a note (a crypto coin, in this case) in exchange for a promise that they'll give you back the amount of fiat printed on the note. this is the primary purpose of a bank.
- ta12653421 1y agono, second-layer-bank :-D
- habinero 1y agoNo, a bank is regulated and insured and we have a lot of experience handling banks that go insolvent or otherwise fail. Stablecoins are three raccoons in a trenchcoat who pinky promise you can trust them.
- baq 1y agothis is exactly what I meant when I said > they'll try very hard to stop anyone from calling them that because they are banks at the core of what they do, but don't want to be regulated like banks.