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Exactly. Stablecoins make zero sense.
by colordrops 7mo ago
Exactly. Stablecoins make zero sense.
- koakuma-chan 7mo agoyou can send them around easily without having to deal with bullshit payment systems
- bigfishrunning 7mo agoUntil it becomes another bullshit payment system
- snypher 7mo agoNo-one in the real world wants to be paid with a $USR. Most everyone wants a cashapp/zelle/PayPal/wire transfer. The bullshit payment systems gained ground on crypto while crypto became more difficult/less usable
- mothballed 7mo agoIf you track the FATFs crushing of bearer bonds, bearer notes, non-KYC/non-AML offshore banking, and Hawala it almost perfectly tracks with the rise of crypto.
- koakuma-chan 7mo agoI don't know what USR is, but I would prefer to be paid in USDT or USC if Wealthsimple supported it as deposit method. When I withdraw, I do Deel -> Wise -> Interac e-Transfer -> Bank -> Interac e-Transfer -> Wealthsimple. This is incredibly stupid and I am forced to buy Canadian dollars. For groceries or electronics, you can buy gift cards using crypto.
- lagniappe 7mo agoPYUSD is run by PayPal afaik.
- kogasa240p 7mo agoMonero is better for that task.
- troad 7mo agoBut you do have to deal with bullshit payment systems. I can't receive stablecoins in my regular bank account, I'd have to set up some crypto nonsense on DankRocketBets or whatever for it to even work. Why would I do this when I can already receive actual USD without any extra ceremony? Stablecoins are a solution in search of a problem.
- koakuma-chan 7mo agoIf your employer does direct deposit of USD into your USD bank account, you don't need stable coins. This is not the case for most people outside of the U.S.
- troad 7mo agoI am outside the US. Many of my assets are in USD and USD-denominated securities. I've never touched a stablecoin. Waiting to hear what "most people outside the US" are supposed to need those stablecoins for.
- mothballed 7mo agoMost people don't realize they're inside a plexiglass shielded financial jail until they try to do something like wiring money for some legal activity in someplace spicy or on the FATF grey list. If you fall into the middle bands of uses, or in the upper class that can just bend or make the rules, then the financial system is well oiled and it looks like the people questioning it are just cranks. It's true that a lot of those in the outer bands are criminals but others are things like "buying a truck to build an orphanage for starving Iraqi children just outside of terrorist territory" or "wanted an investment visa in some corrupt island paradise and as it turns out no bank will open up account for purposes of 'international wires to the Comoros' "
- tptacek 7mo agoThis comment isn't really beating the rap that the primary purpose of stablecoins is to facilitate crime.
- Saline9515 7mo agoStablecoins enable cash-like (instantly redeemable and verifiable) payments for large amounts, for almost free. In EU countries, you can't now buy a car with cash. You have to buy a bearer's check from your bank, which is expensive, requires that both parties have a brick and mortar bank, and doesn't work cross-border. Stablecoins solve this.
- stevage 7mo agoHow do stablecoins fit in here? You can buy a car with crypto but not cash?
- Saline9515 7mo agoMany EU countries have limits on cash payments, and the EU will enforce a union-wide limit of 10,000€ in 2027. Of course, this limit won't be reevaluated over time, so the real value will decrease with inflation.
- stevage 7mo agoI'm just trying to imagine what kind of European vendor is willing to accept crypto for their car. The most obvious reasons seem a bit shady.
- Saline9515 7mo agoThe use case would be for transactions between individuals. A friend working at a large industrial firm told me recently that crypto would solve a problem that they have in Asia: orders are often done during auctions from the producer, and require instant payments; however the payment rails take two weeks to clear a transaction. Crypto would fix this. The fact that it's not widespread doesn't mean that there isn't a usecase.
- Ekaros 7mo agoIt was good while ago, but last time I bought a car I just did bank transfer. SEPA transfers are entirely free. Was kinda amazed that they just handed me keys when I showed them the receipt from my own online bank...
- boringg 7mo agoUnless you are also trying to prop up the us government by buying treasuries (us based stable coins)
- rchaud 7mo agoMost Treasuries are held by US banks, investment firms and municipalities. I'm pretty sure those firms hold a good chunk of global stablecoin volume, given the nonexistent regulation of crypto in the US relative to other countries.
- SubNoize 7mo agoMicro transactions? Giving agents access to money ?
- mememememememo 7mo agoAny token offers this.
- pants2 7mo agoUnbacked stablecoins like USR make no sense - but USDC is one of the few real uses that crypto has.
- mememememememo 7mo agoDecentralized. Stable. Pick one.
- Jommi 7mo agoDecentralized > the transfer of authority, decision-making, or operational functions away from a central authority to smaller, local, or distributed nodes, systems, or entities DAI is decentralized and stable
- Jommi 7mo agoUSR is not unbacked. You have a severe misunderstanding of the whole situation if you say that.
- oersted 7mo agoTo be fair, the article itself says "unbacked" right upfront: > an attacker was able to mint tens of millions of Resolv’s unbacked stablecoins (USR) and extract roughly $23 million in value
- gwd 7mo agoIf I understand the situation properly, the system is only supposed to mint backed stable-coins; the hack resulted in unbacked ones.