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When people in a developing country cannot hold foreign currency it is a result of a deliberate decision by their government. That creates a number of issues. T
by graemep 4mo ago
When people in a developing country cannot hold foreign currency it is a result of a deliberate decision by their government. That creates a number of issues. They may well be breaking the law holding stable coins. It means practical difficulties in buying stable coins (they need someone who will sell stablecoins in their currency).
- mekdoonggi 4mo agoThe fact that governments might not be able to stop people from using stablecoins affects the laws, though.
- graemep 4mo agoThe governments cannot stop people holding physical notes either, and they still have the laws.
- deleted 4mo ago[deleted]
- ianm218 4mo ago> (they need someone who will sell stablecoins in their currency). It's pretty hard to really lock people out of stable coins really. You really just need someone to sell you some type of cryptocurrency that can be eventually exchanged for stablecoins. You can even do "peer to peer" trades if the government really cracks down on holding crypto. I agree with the sentiment of this article but atleast some parts of the world with poor currencies like Latam have seen some benefit from stbales.
- datadrivenangel 4mo agoRight! It's not that stable coins are decentralized, it's that the centralized holder is not in your jurisdiction and so your jurisdiction can't deface their money!
- abirch 4mo agoThe only bad thing with USD based stable coin is you have to trust that the USA will keep paying its debts longer than you hold the stable coin.
- skybrian 4mo agoThat sounds like a good bet.
- graemep 4mo agoThe US has no reason not to pay its debts. Its debts AFAIK are USD denominated. How often has a country defaulted on debt in its own currency? I can think of one example and I thought it was a stupid thing to do at the time (it was forced by creditors, presumably as a punishment) and it was not a complete default, but a haircut.
- abirch 4mo agoSorry, I was thinking hyperinflation as a de facto default. As in Germany, Brazil (Cruzeiro), Argentina, etc. If the US hits hyperinflation say, debt is 300% GDP in a decade at some point people will stop loaning it money and the dollar loses its value. Stable coins become worthless as well.