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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

#171

Post by edem »

EVa5I7bHFq9mnYK wrote: post #117

Haha, after a decade of FUD, turns out USDT were more cautious and diligent with their funds, than the "regulated and transparent" USDC. Still risky, of course. No substitute to holding proper BTC.

Note that this is not because of mismanagement at Circle. This is because these banks bought 10yr bonds and MBSes and now that there is a bank run they have to take huge losses if they have to liquidate. Circle in fact managed this really well IMHO with 75% backing in 36 day t-bills that can be liquidated fast.

Re: Coinbase suspending USDC:USD conversions over the weekend

#172

Post by Symbiote »

machinima40 wrote: post #164
Symbiote wrote: post #141

Earlier quoted context omitted.

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.

Really? Pls back this up with a citation or example. Name one country in those places or outside of Britain for that matter where british pounds are accepted as currency - today and not 1950

I wrote "reasonable acceptance". You can pay for a taxi, a good quality/touristy restaurant or a safari. You can easily exchange sterling for local currency at banks or currency exchange offices.

Kenya and Egypt are two examples.

Re: Coinbase suspending USDC:USD conversions over the weekend

#173

Post by roflyear »

fabian2k wrote: post #104
wil421 wrote: post #102

Earlier quoted context omitted.

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.

You won't get anywhere with a $100 bill in many developed countries, outside of some very tourist-y areas maybe. At least not in regular shops, of course you can exchange it at a bank. But if you try to order a coffee with US dollars, you won't get one.

Doubt. Everyone knows what USD is.

Re: Coinbase suspending USDC:USD conversions over the weekend

#174

Post by Symbiote »

baremetal wrote: post #161
drexlspivey wrote: post #110

Earlier quoted context omitted.

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

I am under the impression that pretty much anywhere in the developing world USD will spend. Maybe not in the west, but places that have a weak currency like africa, the middle east, and south america. Here are a few cherry picked examples https://www.reuters.com/world/americas/half-payments-caracas... https://www.tripadvisor.com/ShowTopic-g293974-i368-k4798488-... https://www.voanews.com/a/lebanon-leans-on-us-dollar-…

The Turkey example says dollars are not generally accepted, although they are easily changed.

Re: Coinbase suspending USDC:USD conversions over the weekend

#175

Post by edem »

elAhmo wrote: post #170

So, another “stablecoin” showing up to be not stable? How many of them need to fail before it is clear this is not a viable mechanism?

Just because you can't trade it 1:1 doesn't mean it is not stable. The only question is whether you'd still be able to redeem it 1:1 for USD in the future or not. This has happened before with Tether and they were able to service a huge bank run not so long ago.

Re: Coinbase suspending USDC:USD conversions over the weekend

#176

Post by coffeebeqn »

Grimburger wrote: post #15

Tether, the Sauron of stablecoins, has zero exposure to SVB and is holding the peg just fine. Sorry Patio and friends, maybe next time :)

I have very little confidence that tether can survive a similar bank run if/when people want to turn in large amounts of it

Re: Coinbase suspending USDC:USD conversions over the weekend

#179

Post by tarsinge »

baremetal wrote: post #154
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

I think he means that the US military has a habit of invading countries who sell oil in currencies other than the US$. _Libya_ 2008 https://www.cfr.org/blog/libya-shunning-dollar (Libya Shunning the Dollar?) 2011 Invaded _Iraq_ 2000 https://www.cnn.com/2000/WORLD/meast/10/30/iraq.un.euro.reut... (U.N. to let Iraq sell oil for euros, not dollars) 2003 invaded

_Syria_

2006 https://www.aljazeera.com/news/2006/2/14/syria-picks-euros-o...

No direct invasion but proxy war (lessons learned).

Re: Coinbase suspending USDC:USD conversions over the weekend

#180

Post by alasdair_ »

amon22 wrote: post #143
usrusr wrote: post #119

Earlier quoted context omitted.

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?

If you drink your coffee then pay, then yes, since you are now paying a debt and dollars are legal tender for all debts public and private.

If it's in advance of giving you your coffee, no, they could demand you pay in dogecoin only if they wish.

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