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Coinbase suspending USDC:USD conversions over the weekend

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Re: Coinbase suspending USDC:USD conversions over the weekend

#141

Post by Symbiote »

wil421 wrote: post #102
xref wrote: post #91

Earlier quoted context omitted.

Unlucky for the UK coffee shop that wouldn’t take my USD this morning I guess? Not quite sure what you’re trying to say, if a country doesn’t want to accept usd…they don’t have to

Except a $100 bill is likely accepted. I’ve been to developing countries that will accept local currency, dollars, and euros. I doubt they would accept any pounds, tethers, or other fake electronic currency.

Pounds have reasonable acceptance in Africa, the Middle East and parts of Asia -- many of those countries either used to be part of the British Empire or a neighbour, so there's trade, emigration, etc. Probably the Caribbean too, though I haven't been there.

In most cases e.g. a French tourist would be fine taking euros, but a British tourist can take pounds and not pay to convert to dollars or euros first.

Re: Coinbase suspending USDC:USD conversions over the weekend

#142

Post by davidwritesbugs »

xref wrote: post #91
bombolo wrote: post #84

Earlier quoted context omitted.

USD is backed up by USA army. If a country refuses to accept USD they will have a democracy problem and get attacked.

Unlucky for the UK coffee shop that wouldn’t take my USD this morning I guess? Not quite sure what you’re trying to say, if a country doesn’t want to accept usd…they don’t have to

His point is that fiat currencies are issued by, and backed by, the state and the that trust is, ultimately, based on its enforcement capacity - the police/courts/US army rather than convertibility with gold or other hard asserts.

Re: Coinbase suspending USDC:USD conversions over the weekend

#143

Post by amon22 »

usrusr wrote: post #119
drexlspivey wrote: post #110

Earlier quoted context omitted.

This is hilarious. Do you really think you can pay with USD in any random country?

Talking pragmatics, what are the chances any random coffee shop in the USA would take your money if all you got were $100 bills?

Aren't they legally required to do so?

Re: Coinbase suspending USDC:USD conversions over the weekend

#144

Post by justeleblanc »

andrepd wrote: post #139
xref wrote: post #91

Earlier quoted context omitted.

Unlucky for the UK coffee shop that wouldn’t take my USD this morning I guess? Not quite sure what you’re trying to say, if a country doesn’t want to accept usd…they don’t have to

We're talking about international trade, not an espresso at the corner shop.

Even so. Not every merchant accepts USD.

Re: Coinbase suspending USDC:USD conversions over the weekend

#145

Post by seydor »

paulpauper wrote: post #49

BTC crashed, stable coins crashing . Financialization means new, unforeseen risks are constantly showing themselves due to the intricacy of the interconnected system. Failure of stable coins will probably lead to sub 10k $btc for sure. Already BTC crashing now on this news after an attempt to rally. FTX was just $20 billion, stable coins combined are $150 billion....

BTC is at $20000 ... at the current rate of the dollar anyways

Re: Coinbase suspending USDC:USD conversions over the weekend

#146

Post by pclmulqdq »

mtlmtlmtlmtl wrote: post #71
pclmulqdq wrote: post #44

Earlier quoted context omitted.

A ponzi scheme is just one step along the path to true decentralization.

It's kind of telling that I truggle to tell whether this is satire. I could totally see a cryptobro unironically making this claim.

This was satire but it's how a lot of crypto projects are run.

Re: Coinbase suspending USDC:USD conversions over the weekend

#147

Post by ptero »

wil421 wrote: post #124
Ekaros wrote: post #114

Earlier quoted context omitted.

As a tourist maybe. But try to do it at any place mostly frequented locals in Europe and you will get nowhere. But funny thing. Same does not only apply to USD, but Euros as well. And EU doesn't even have army. And still on my last trip the taxis took the money.

What developing countries are in the EU?

I think the main disconnect is between developing countries (that may have currency stability issues and where folks are more likely to use dollars or euros) and the developed world, where there is no benefit in using USD for regular transactions. Plus a whiff of "F those Americans who act like they own the whole world".

And your specific comment that started this didn't read like you are only argued about developing world. My 2c.

Re: Coinbase suspending USDC:USD conversions over the weekend

#148

Post by gus_massa »

sour-taste wrote: post #98
PeterisP wrote: post #73

Earlier quoted context omitted.

Well, not all USD is stuck in SVB, at least according to what they claim. If Coinbase knows that they have the reserves to back USDC, or 93% of the reserves to back USDC, then them buying back any USDC on the open market at 90% or less is huge amounts of certain profit, while everyone else has to gamble on what the Coinbase actual capabilities are and in many cases are willing to accept a haircut to gain certainty.

I think that only holds up while people still have faith in the coin. Once that faith is gone Coinbase can buy as much as they want the coin is worthless.

If it's fully backed by liquid stuff, they can just buy everything at $.90 and pocket the remainder 10% and get and early retirement.

If it's fully backed by illiquid stuff, the problem is how much the crash sale will eat from their 10% retirement plan.

If it's very illiquid and they can only sell it at 80%, the price of the coin will drop even more. If it's only illiquid for the weekend as they claim, it may go back to $1 on Monday.

Re: Coinbase suspending USDC:USD conversions over the weekend

#149

Post by lxgr »

loveparade wrote: post #20
mtlmtlmtlmtl wrote: post #5

Earlier quoted context omitted.

Can't help but revel in the fact that these crypto ponzi schemes are so dependent on the very banks all the cryptobros denounce, as evil holdovers from the past that will be obsoleted by their scam tokens (that no one outside their bubble even knows how to use). It's so ridiculous I just have to kind of admire it. It's like a cathedral of human hypocrisy.

Or maybe you just don't understand it? The whole point of USDC is to have exposure to USD and the US banking system, which is supposed to be stable compared to other banking systems around the world. Could that maybe be why it's called USDC? Hmm. If the US banking system starts failing, it absolutely should affect USD stable coins backed by exactly this banking system.

It‘s a bit like expecting physical USD bills to spontaneously combust due to whatever market forces.

The value of one USD stablecoin (measured e.g. in various commodities) might well go down, but the redeemability for one USD never should, regardless of the economic environment.

Re: Coinbase suspending USDC:USD conversions over the weekend

#150

Post by seanhunter »

re-thc wrote: post #29
loveparade wrote: post #20

Earlier quoted context omitted.

Or maybe you just don't understand it? The whole point of USDC is to have exposure to USD and the US banking system, which is supposed to be stable compared to other banking systems around the world. Could that maybe be why it's called USDC? Hmm. If the US banking system starts failing, it absolutely should affect USD stable coins backed by exactly this banking system.

Can't you just buy USD directly? How does that help? What does the C part of it do?

Stablecoins are a cryptocurrency that conforms to the ERC-20 standard[1] so they can be used in blockchain applications that want something that implements that. USDC/USDT are therefore the closest things to USD that can be used in that way.

Obviously people differ as to the utility of those applications but that's what the "C" gets you. You can do those things if you want to. Of course there's quite a lot you can do with actual dollars that you can't do with USDC so you give up a lot also.

[1] https://ethereum.org/en/developers/docs/standards/tokens/erc...

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