341–350 of 388 posts
In doing so, I think they gravely underestimate the kind of meat-grinder they're putting their hand in (as in: the kind of liability they're taking on).
It is obscenely disingenuous, almost fraud, to put "USD" in the name of the coin. That's not what it is. The ability to convert to/from the coin is entirely based on the good graces of the issuer, and any regulators in the relevant jurisdiction(s). People see "USD" and think it's a dollar. Stablecoin authors know this. Unlike more seedy exchanges, Coinbase is based in a state with useful regulators (in this case, the…
It's pegged to the USD, isn't it?
That's the intent. They may vastly over-estimate their ability to maintain the peg.
Hi, I'm Anders Brownworth, Chief Evangelist at Circle. I'm happy to answer any questions on USD Coin, CENTRE or Circle. We're also hiring! See https://circle.careers/
Who are your custodian banks (how many)?
Who are your auditors?
Will you be holding exactly one USD for one token?
Will the backing be just USD sitting in a custodian account or do you plan to invest them?
How are you going to deal with the fact that your custodians will likely be doing fractional reserve themselves?
How will you guarantee fungibility of the token?
Earlier quoted context omitted.
Inflation is a desirable feature in a currency. A currency should be a medium of exchange. Deflation encourages people to hold currency rather than exchange it.
I don't find it at all desirable that some people have the right to devalue my holdings. It is farcical to think that people would hold the medium of exchange forever if it kept increasing in value because at some point they would either have so much that they would prefer to convert (some of) it into material wealth or chase something with a higher rate of return. Alternatively they would have so little that they wo…
Earlier quoted context omitted.
I don't find it at all desirable that some people have the right to devalue my holdings. It is farcical to think that people would hold the medium of exchange forever if it kept increasing in value because at some point they would either have so much that they would prefer to convert (some of) it into material wealth or chase something with a higher rate of return. Alternatively they would have so little that they wo…
Please don't take this the wrong way, but you sound financially illiterate. Cash is not meant to be held long term. It's meant to be spent or invested. That's how the economy continues to grow.
Stablecoins seem like they would achieve most of the goals of the original cryptocurrencies such as Bitcoin: - Decentralized transactions - 24/7 access - Low fees - Store of value I suppose the only drawback here is that they're issued from a centralized authority. That said, for practical purposes the vast majority of Bitcoin holders didn't mine their own coins either. Despite this, no one on Twitter[1] seemed excit…
No currency peg has ever been defended indefinitely.
And pegging crypto to USD doesn’t solve the problem it was created for in the first place.
Earlier quoted context omitted.
Please don't take this the wrong way, but you sound financially illiterate. Cash is not meant to be held long term. It's meant to be spent or invested. That's how the economy continues to grow.
Define "economy growing", all the way to the end.
"Stablecoin" in general generates a ton of legal risk for the operators. If you can make peer-to-peer transactions with it, then the coin operators are definitely not complying with Know Your Customer and Anti-Money Laundering laws. This will pretty reliably get the US Feds to raid your offices, seize your website and servers, arrest the principles responsible, and prosecute them. See also: Liberty Reserve. On the ot…
I go to the company and give them a dollar. They cryptographically sign over to me a digital Chuck E. Cheese token of sorts that I can cryptographically sign over to someone else. Just like I can do whatever I want with Chuck E. Cheese tokens, I can circulate my USDC around and do whatever with it. Then at some point in the future someone goes to the company and says hey I want a dollar. He signs the token over to th…
A part of KYC regulations is often also the question, "how did you get the money". So
> Everything that happens in between is not really their business.
is probably not true.
Hi, I'm Anders Brownworth, Chief Evangelist at Circle. I'm happy to answer any questions on USD Coin, CENTRE or Circle. We're also hiring! See https://circle.careers/
Why did you pick Ethereum instead of Ripple or Stellar? They have lower transaction fees and almost instant transfers in the seconds while their token contracts are way easier to setup and maintain if you are thinking on adding EUR, GBP, YEN, etc in the future. The only real advantage of Ethereum is their user base which is important but not the only decisive factor.
Ethereum tokens have far wider support among industry players and consumers, and a far larger set of compatible applications (e.g. state channel networks that allow near-free and instant ERC20 transactions, like Celer).
>>while their token contracts are way easier to setup
Setting up an ERC20 contract is literally a copy, paste, brand and broadcast job. In any case the technical cost of setup is not a factor that's relevant to large companies.
Earlier quoted context omitted.
If you can make peer-to-peer transactions with it, then the coin operators are definitely not complying with Know Your Customer and Anti-Money Laundering laws. You can certainly make peer-to-peer transactions with it. But I think you are misinterpreting the KYC laws. Circle (who operates USDC) isn't trying to be secretive about this. They are regulated as a "money transmitter" and a "money services business" - https:…
When I cash out $50 worth of USDC, how will Circle know that I'm not laundering drug money?