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I am not deep enough into the tech complexity, but AFAIK the token on TAP is traceable by the owner, just as bitcoin is. While not on-chain, the proof file that

I am not deep enough into the tech complexity, but AFAIK the token on TAP is traceable by the owner, just as bitcoin is. While not on-chain, the proof file that the new owner gets during transfer includes the full history and lineage of that token. I.e. the moment you want to exchange the stablecoin token for the underlying asset (being it fiat USD, gold or whatnot) the stablecoin issuer can refuse to do that exchange for whatever grounds they have - probably based on regulation. So if a sanctioned entity (russia, iran) owned that token before, it is in the history and the stablecoin issuer can refuse to swap. BUT: Good luck tying the public keys to real-world entities like russian goverment. Other than on-chain with bitcoin, you would only revel the public key if you traded with that entity, and are part of the lineage. The keys are not revealed to the entire world. Plus, this also does not prevent fungibility of the token, you can still transfer the token to whatever other wallet you like, selling it to someone who does not care/check if it is tainted.

sunshine-o 7mo ago
Thanks. Yeah I am a bit surprised how little information (or hard to find) there is about how they do it. Also right now Tether do not declare any USDT minted or in circulation on Bitcoin on their "Transparency" page [0] But once again this is very new... - [0] https://tether.to/en/transparency/?tab=usdt https://tether.to/en/transparency/?tab=usdt
- littlecranky67 7mo ago
  The whole stablecoint-over-taproot-over-lightning is IMHO way underreported and underestimated in media. This stuff has the potencial to obsolete any payments indermediaries, while combining the truly decentralized bitcoin blockchain, with anonymous and instant lightning transfers using non-volatile stablecoins. No shitcoins, no other blockchains with questionable control patterns, no discussions whether bitcoin has a value or not etc. As for the technology, issuing a fungible token on bitcoin can be done in minutes using tapd. Download and a couple of commands + one single anchor bitcoin transactions, and the token is minted. Just government regulation around stablecoins hasn't caught up (and probably won't, because banks will lobby against abolishing themselves).

sunshine-o 7mo ago

Thanks. Yeah I am a bit surprised how little information (or hard to find) there is about how they do it. Also right now Tether do not declare any USDT minted or in circulation on Bitcoin on their "Transparency" page [0] But once again this is very new... - [0] https://tether.to/en/transparency/?tab=usdt https://tether.to/en/transparency/?tab=usdt

littlecranky67 7mo ago
The whole stablecoint-over-taproot-over-lightning is IMHO way underreported and underestimated in media. This stuff has the potencial to obsolete any payments indermediaries, while combining the truly decentralized bitcoin blockchain, with anonymous and instant lightning transfers using non-volatile stablecoins. No shitcoins, no other blockchains with questionable control patterns, no discussions whether bitcoin has a value or not etc. As for the technology, issuing a fungible token on bitcoin can be done in minutes using tapd. Download and a couple of commands + one single anchor bitcoin transactions, and the token is minted. Just government regulation around stablecoins hasn't caught up (and probably won't, because banks will lobby against abolishing themselves).