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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

#211

Post by PinguTS »

slaw wrote: post #206
PinguTS wrote: post #203

Earlier quoted context omitted.

So, when will the USA military invade Norway? I assume per your definition of "country" Norway should be a country as well. Norway is a major party in selling oil and gas, but doing it so in NOK. Norway is not even part of NATO. At least until now. So when do you expect an attack by the USA military?

Norway uses US dollar for oil trade. https://www.investopedia.com/terms/p/petrodollars.asp

Petrodollar is just a term. It does not mean that the contracts are in US Dollar. The measurement is in NOK.

"In Consideration of the assignment described under Article 2.1 above, Buyer shall pay to Seller a post tax amount of NOK [zz] ([zz]), ref. Article 5."

https://offshorenorge.no/globalassets/dokumenter/naringspoli...

Also the measurement is NOK: https://www.norskpetroleum.no/en/production-and-exports/expo...

Re: Coinbase suspending USDC:USD conversions over the weekend

#212

Post by bandrami »

kart23 wrote: post #43

So USDC is currently trading at $0.93. Which, if you believe in Coinbase, is free money. And if you don't, then its very bad news for the company and possibly worse news for the banks that are keeping the USDC reserves, because they are about to have a massive bank run on monday. https://coinmarketcap.com/currencies/usd-coin/

Even crypto can't avoid the Impossible Trinity. Free movement of capital, a fixed exchange rate, and a steady money supply: you can only have 2 at once.

Re: Coinbase suspending USDC:USD conversions over the weekend

#213

Post by CydeWeys »

bombolo wrote: post #84
pclmulqdq wrote: post #50

Earlier quoted context omitted.

There's something to be said for everyone knowing the risks of doing business with you, and behaving consistently (consistently badly) so that those risks don't change. That's the regime of Tether. Nobody will even be mad when the rug gets pulled. The federal reserve could stand to learn a thing or two, honestly.

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

This is a really bad misunderstanding of how governmental monopoly on violence affects the acceptance of its currency.

The USD has value because you need to pay your taxes in USD, and if you don't pay your taxes, the government will take away your freedom. It has nothing to do with people in other countries transacting in that country's local currency.

Re: Coinbase suspending USDC:USD conversions over the weekend

#215

Post by mtlmtlmtlmtl »

__MatrixMan__ wrote: post #193
mtlmtlmtlmtl wrote: post #112

Earlier quoted context omitted.

Sure, and paying with crypto is always going to be more painful unless you use an exchange, which is just a bank with less regulation(ok maybe not in the US, since banks are barely regulated there anyway). Which again means it will never catch on unless it just becomes a conventional currency. Which, btw is a sociological inevitability anyway(I will die on this hill, try me). Decentralisation never lasts, see countle…

> Decentralisation never lasts Mycorrhizal networks, to pick just one of myriad counterexamples, would like a word. Decentralization is just something that humans are (so far) bad at designing for. > paying with crypto is always going to be more painful [than fiat] unless you use an exchange Always is a long time. As governments figure out how to add features to fiat via CBDC's I can definitely image some bloat that…

We're talking about complex social structures here, not fungi. The fact that you bring up fungi is just absurd. It proves beyond a shadow of a doubt that you have no understanding of what I was getting at.

Re: Coinbase suspending USDC:USD conversions over the weekend

#216

Post by xwdv »

lxgr wrote: post #151
xwdv wrote: post #130

Earlier quoted context omitted.

Not that easy. If they buy it all up that only cements the value at their entry point.

How so? If it‘s eventually redeemable for $1, the market price should not matter. Whether that is still the case is the big question.

If it was redeemable for a dollar it would never have been sold for 0.89

Re: Coinbase suspending USDC:USD conversions over the weekend

#218

Post by slaw »

PinguTS wrote: post #211
slaw wrote: post #206

Earlier quoted context omitted.

Norway uses US dollar for oil trade. https://www.investopedia.com/terms/p/petrodollars.asp

Petrodollar is just a term. It does not mean that the contracts are in US Dollar. The measurement is in NOK. "In Consideration of the assignment described under Article 2.1 above, Buyer shall pay to Seller a post tax amount of NOK [zz] ([zz]), ref. Article 5." https://offshorenorge.no/globalassets/dokumenter/naringspoli... Also the measurement is NOK: https://www.norskpetroleum.no/en/production-and-exports/expo...

> Norwegian Oil and Gas Recommended Model Agreement for sale and purchase ..

NOK is recommended. That document doesn't say what currency is used for actual transfers.

Re: Coinbase suspending USDC:USD conversions over the weekend

#219

Post by globalreset »

CydeWeys wrote: post #213
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.

This is a really bad misunderstanding of how governmental monopoly on violence affects the acceptance of its currency. The USD has value because you need to pay your taxes in USD, and if you don't pay your taxes, the government will take away your freedom. It has nothing to do with people in other countries transacting in that country's local currency.

That's also a myth that doesn't make sense.

If it was about taxes people would just hold something else and converted some temporarily to pay their taxes leaving government with currency nobody wants.

It's all about people's trust and willingness to store savings and make loans in a given current.

Re: Coinbase suspending USDC:USD conversions over the weekend

#220

Post by lukeschlather »

hailwren wrote: post #210
FabHK wrote: post #87

Earlier quoted context omitted.

That's funny. The USD is entirely unaffected. Some deposits at certain banks are affected for large (mostly professional) holders. Retail investors will be made whole (up to 250k), thanks to this banking regulation thingy you might have heard of. USDC is meant to mirror the USD (sure, with its concomitant FX and inflation risk), but it is certainly not meant to introduce credit risk vis-à-vis some bank most people ha…

You’re aware that ~$150B of $200B SVB deposits are not covered by FDIC insurance, correct? I don’t think SVB is going to end up 0, but pointing at 25% of investments being safe and saying “look regulation works so well” seems absurd.

All the people involved are institutional investors. 0% of people who have USD savings under $250k are affected by this. On the other hand, anybody who has a significant portion of their net worth tied up in cryptocurrency is affected by this.
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