Coinbase suspending USDC:USD conversions over the weekend

Post by timmytokyo » Sat, Mar 11, 2023, 5:31 PM UTC

merlinoa wrote: post #234

rippercushions wrote: post #48

Earlier quoted context omitted.

There's something deeply ironic about a flight to safety in the form of Tether , which has famously been described as being "quilted out of red flags". But if you can't redeem it and it's not backed by anything remotely approaching normal assets, I guess you can't have a bank run on it either... until the music stops and the insiders propping it up run out of chairs.

Tether is better run than any other stable coin. Yes, it could go to zero for many different reasons, but the main reason it gets so much flak (compared to other stables) is because it is less compliant with US regulators than USDC and the other major stable coins. Being less complaint with US regulators is also the reason it is used more than any other stable (highest volume by a wide margin); because people without…

Post by 101011 » Sat, Mar 11, 2023, 5:49 PM UTC

lukeschlather wrote: post #220

hailwren wrote: post #210

Earlier quoted context omitted.

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.

Post by merlinoa » Sat, Mar 11, 2023, 5:58 PM UTC

CharlesW wrote: post #240

merlinoa wrote: post #234

Earlier quoted context omitted.

Tether is better run than any other stable coin. Yes, it could go to zero for many different reasons, but the main reason it gets so much flak (compared to other stables) is because it is less compliant with US regulators than USDC and the other major stable coins. Being less complaint with US regulators is also the reason it is used more than any other stable (highest volume by a wide margin); because people without…

> Tether is better run than any other stable coin. Only in the PR sense. A rug pull is inevitable. On the bright side, when it crashes it'll take what's left of crypto with it.

Post by me_again » Sat, Mar 11, 2023, 5:59 PM UTC

acomar wrote: post #239

tarunupaday wrote: post #162

Earlier quoted context omitted.

India is a developing country. Are you somehow under the impression that the US army will attack a coffee shop in New Delhi if they stop taking US dollars? Even in those parts of Mexico and Caribbean countries where the economy is heavily dependent on US tourism - and the US dollar will be accepted at retail shops; the price difference between paying in dollars and paying in local currency is going to be against the…

no but expect the US to start invading weaker countries that depeg from the dollar. the US is, at present, the world's reserve currency. that status is what creates the petrodollar. as countries move towards Russia or China, that hegemony is threatened.

Post by mtlmtlmtlmtl » Sat, Mar 11, 2023, 6:07 PM UTC

alphanullmeric wrote: post #243

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…

The point of crypto is to you from making rules about other people’s money. The state sponsored looting stunt the canadian government pulled off last year would be impossible with crypto. Likewise would PDT laws and similar regulations governing what other people can choose to risk.