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Coinbase is launching support for the USDC stablecoin

blog.coinbase.com

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Re: Coinbase is launching support for the USDC stablecoin

#141

Post by Geee »

VMG wrote: post #47
Permit wrote: post #11

Stablecoins seem like they would achieve most of the goals of the original cryptocurrencies such as Bitcoin: - Decentralized transactions - 24/7 access - Low fees - Store of value I suppose the only drawback here is that they're issued from a centralized authority. That said, for practical purposes the vast majority of Bitcoin holders didn't mine their own coins either. Despite this, no one on Twitter[1] seemed excit…

The tokens only have value as long as your tokens are redeemable. Multiple things can make them non-redeemable: * Your tokens can be tainted, for instance because they were once owned by a blacklisted address. The value of your tokens will be effectively 0. * The issuer might run a fractional reserve (this is the accusation against Tether, the most popular stablecoin at the moment) * The asset backing the stablecoin…

Doesn't every bank run a fractional reserve? So when Coinbase deposits those reserves in a bank, the bank will lend them and there actually isn't a guaranteed reserve.

Re: Coinbase is launching support for the USDC stablecoin

#142

Post by antiffan »

I’m trying to think of use-cases for trusted stable-coins. The obvious one is just another way to sell products — this has failed for Bitcoin due to volatility risk.

One scenario I can think of is a decentralized e-reader and e-book marketplace:

- you have an e-reader app that is capable of decrypting books stored somewhere, as long as the content was encrypted with your public key

- authors publish their books to contracts that accept payments via an ERC20 stable-coin

- the contract responds by encrypting a copy of the book with your public key and placing it at a location your e-reader can retrieve it

Are there inherent advantages to a decentralized book store vs. Amazon though? Not sure…

Re: Coinbase is launching support for the USDC stablecoin

#143

Post by scabarott »

I think stablecoins is where the cryptocurrency experiment is headed for the near & forseeable future. It's interesting to watch the experiment slowly give way to the reality of operating in the world at large. At least we still get some form of digital money. On another note, I think it's really concerning how much of a monopoly Coinbase is becoming in this space. They're probably the only corporate entity making any real (no-scam) money (in the US) and everyday they seem to be morphing into some kind of Goldman Sachs/Google/Microsoft hybrid of crypto-money.

Re: Coinbase is launching support for the USDC stablecoin

#144

Post by radicaldreamer »

arcticbull wrote: post #85
radicaldreamer wrote: post #78

Earlier quoted context omitted.

Only in the United States and with stringent per day limits? Cryptowallets work no matter where you’re at and without limitations.

Think it through, that’s true only if you already have the USDC, you still have to buy them somewhere and sell them somewhere, with the same limits. Also I just picked US services, Canada has Interac e-Transfer and other countries have similar products too. The whole EU has SEPA. There are competitors in the African market even like mpesa. And if you want to move money to another country international remittances are…

"Most people" don't but a large number of companies do... and remittances between people are a $500 billion/year market?

Re: Coinbase is launching support for the USDC stablecoin

#145

Post by hudon »

lacker wrote: post #105
Permit wrote: post #11

Stablecoins seem like they would achieve most of the goals of the original cryptocurrencies such as Bitcoin: - Decentralized transactions - 24/7 access - Low fees - Store of value I suppose the only drawback here is that they're issued from a centralized authority. That said, for practical purposes the vast majority of Bitcoin holders didn't mine their own coins either. Despite this, no one on Twitter[1] seemed excit…

Another key drawback of USDC is that your account can be frozen by the centralized authority: USDC tokens are ERC-20 compatible and can be used with any ERC-20 compatible digital wallet. However, a global blacklist is maintained by CENTRE for USDC, which prevents tokens from being sent into or from blacklisted addresses. Reasons for blacklisting could include known fraudulent or illegal activity, or a legal order or…

Same drawback applies to Bitcoin. Send BTC from Coinbase to a blacklisted entity and see how quickly CB, Gemini, etc. shut down your accounts. Then you’re left with your local client but you can’t trade anywhere... and speculation is crypto’s only use case today.

Re: Coinbase is launching support for the USDC stablecoin

#146

Post by lawn »

hudon wrote: post #145
lacker wrote: post #105

Earlier quoted context omitted.

Another key drawback of USDC is that your account can be frozen by the centralized authority: USDC tokens are ERC-20 compatible and can be used with any ERC-20 compatible digital wallet. However, a global blacklist is maintained by CENTRE for USDC, which prevents tokens from being sent into or from blacklisted addresses. Reasons for blacklisting could include known fraudulent or illegal activity, or a legal order or…

Same drawback applies to Bitcoin. Send BTC from Coinbase to a blacklisted entity and see how quickly CB, Gemini, etc. shut down your accounts. Then you’re left with your local client but you can’t trade anywhere... and speculation is crypto’s only use case today.

> but you can’t trade anywhere

Just trade on all the other less regulated exchanges. Or localbitcoin. Or, you know, buy stuff.

> and speculation is crypto’s only use case today.

Or you buy stuff... For example:

* Webhallen (huge Swedish online shop)

* scan.co.uk (uk based computer online shop)

* purse.io (buy stuff from amazon)

* fastmail (emails)

* VPN/VPS/domains from various providers

* darknetmarkets

Re: Coinbase is launching support for the USDC stablecoin

#147

Post by celticninja »

hudon wrote: post #145
lacker wrote: post #105

Earlier quoted context omitted.

Another key drawback of USDC is that your account can be frozen by the centralized authority: USDC tokens are ERC-20 compatible and can be used with any ERC-20 compatible digital wallet. However, a global blacklist is maintained by CENTRE for USDC, which prevents tokens from being sent into or from blacklisted addresses. Reasons for blacklisting could include known fraudulent or illegal activity, or a legal order or…

Same drawback applies to Bitcoin. Send BTC from Coinbase to a blacklisted entity and see how quickly CB, Gemini, etc. shut down your accounts. Then you’re left with your local client but you can’t trade anywhere... and speculation is crypto’s only use case today.

You can avoid gemini and coinbase if you use bitcoin. You cannot avoid them if you use USDC/GUSD.

Re: Coinbase is launching support for the USDC stablecoin

#148

Post by lacker »

hudon wrote: post #145
lacker wrote: post #105

Earlier quoted context omitted.

Another key drawback of USDC is that your account can be frozen by the centralized authority: USDC tokens are ERC-20 compatible and can be used with any ERC-20 compatible digital wallet. However, a global blacklist is maintained by CENTRE for USDC, which prevents tokens from being sent into or from blacklisted addresses. Reasons for blacklisting could include known fraudulent or illegal activity, or a legal order or…

Same drawback applies to Bitcoin. Send BTC from Coinbase to a blacklisted entity and see how quickly CB, Gemini, etc. shut down your accounts. Then you’re left with your local client but you can’t trade anywhere... and speculation is crypto’s only use case today.

At least according to this document, when your USDC account is blacklisted you may no longer send or receive tokens from it. With Bitcoin, even if Coinbase blacklists you, you can still send your Bitcoin to other accounts and exchange it for things. I'm sure it's a huge pain but your Bitcoin will not just be lost forever.

Re: Coinbase is launching support for the USDC stablecoin

#149

Post by celticninja »

Geee wrote: post #141
VMG wrote: post #47

Earlier quoted context omitted.

The tokens only have value as long as your tokens are redeemable. Multiple things can make them non-redeemable: * Your tokens can be tainted, for instance because they were once owned by a blacklisted address. The value of your tokens will be effectively 0. * The issuer might run a fractional reserve (this is the accusation against Tether, the most popular stablecoin at the moment) * The asset backing the stablecoin…

Doesn't every bank run a fractional reserve? So when Coinbase deposits those reserves in a bank, the bank will lend them and there actually isn't a guaranteed reserve.

Coinbase has a guaranteed sum available from the bank, that part is regulated. If coinbase operated as a fractional reserve with regard to cryptocurrency deposits it would be unregulated and could lead to losses for users if it goes tits up. If the bank fucks up coinbase funds are secure, if coinbase fucks up customer we funds are not.
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