Earlier quoted context omitted.
Why does it matter? They owe you the money in the first place. If they’re ill-intentioned they can just refuse to redeem your coins, or require that you send them to a new contract with different rules. There’s no reason credit instruments should be on a blockchain in the first place, given you’re depending on a central party for redemption.
> There’s no reason credit instruments should be on a blockchain in the first place, given you’re depending on a central party for redemption. Can you elaborate? Say you issue RUNEKs, how do we move them around freely in a digital world with the assumption that you are not required for transfers?
You already depend on me for redeeming your coins for USD, so depending on me for transfers doesn’t present any additional risk.