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Coinbase suspending USDC:USD conversions over the weekend
31–40 of 282 posts
Re: Coinbase suspending USDC:USD conversions over the weekend
#32Earlier 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?
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Re: Coinbase suspending USDC:USD conversions over the weekend
#33Earlier 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?
USDC is an ERC20 token on the blockchain. This is required to work with smart contracts and dapps. You can swap USDC for any on-chain asset using uniswap or mix them up using a mixer like tornado cash. It also escapes any capital controls to hold USD which is a benefit for those who are outside US and live in poor or draconian countries.
Re: Coinbase suspending USDC:USD conversions over the weekend
#34Earlier quoted context omitted.
How is a stable coin a Ponzi scheme?
When its assets don’t exist.
Is a bank a ponzi scheme if its assets don't exist also?
Like if a bank has $10B in customer deposits and one of their armored truck drivers escapes across the border with $2B, then some customers can't be paid back when they try to withdraw, does that make it a ponzi?
Re: Coinbase suspending USDC:USD conversions over the weekend
#35Earlier 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?
No, in many countries you cannot buy USD directly. You also cannot store USD in a local bank account. And in various places it's explicitly forbidden to hold USD as savings because it would devalue local currency if everyone started transacting in USD instead.
So, the "C" makes USD exposure available to anyone worldwide, assuming you have e.g. an Ethereum wallet.
Re: Coinbase suspending USDC:USD conversions over the weekend
#36Earlier 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.
How is a stable coin a Ponzi scheme?
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Re: Coinbase suspending USDC:USD conversions over the weekend
#37Earlier 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?
Hard if you're in a country with currency exchange restrictions like Argentina (a big adopter).
Re: Coinbase suspending USDC:USD conversions over the weekend
#38Earlier 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?
You can have smart contracts off it. You can't have a smart contract off USD because USD is not a thing on the blockchain.
Re: Coinbase suspending USDC:USD conversions over the weekend
#39Earlier 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?
A more legitimate use case. An Ethereum contract that converts ETH to USDC. Say you are selling something (an item, security, service or whatever). You can accept payment in any token (in your smart contract) and the token will be converted to USDC.
Re: Coinbase suspending USDC:USD conversions over the weekend
#40Tether, the Sauron of stablecoins, has zero exposure to SVB and is holding the peg just fine. Sorry Patio and friends, maybe next time :)
Of course they wouldn’t have exposure to a bank in the US. There’s a reason that Tether has to do business with the more dodgy kind of offshore banks… Their exposure to any banks is likely far, far smaller than their claimed cash reserves, so it’s unlikely to be a bank crash that stops the Tether musical chairs…
Tether has significant (if not most) of its reserves in US Treasury. I'm pretty sure they are trading in US markets/banks.