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Coinbase is launching support for the USDC stablecoin

blog.coinbase.com

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Re: Coinbase is launching support for the USDC stablecoin

#61

Post by otoburb »

hendzen wrote: post #10

Blockchain-based stablecoins seem like a really convoluted and environmentally wasteful way to implement centralized, cryptographically secure USD based account transfers. Why not just use Chaumian ecash [0] - which is perfectly suitable for this purpose and doesn't require mining? [0] - http://sceweb.sce.uhcl.edu/yang/teaching/csci5234WebSecurity...

>>Why not just use Chaumian ecash [...]

David Chaum probably asked exactly the same question, and starting working on his own own blockchain and cryptocurrency[1] in 2015[2]. I'm a bit sad he didn't call it eCash 2.0.

[1] https://www.prnewswire.com/news-releases/announcing-david-ch...

[2] https://www.prnewswire.com/news-releases/global-investors-ba...

Re: Coinbase is launching support for the USDC stablecoin

#63

Post by ThrustVectoring »

"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 other hand, if you can't make peer-to-peer transactions with it, it's basically a "blockchain" in name only. There's little advantage over traditional bank account systems. Maybe the programmability and verifiability helps? I just don't see that sort of thing doing a lot compared to the whole money-laundering use case, though.

Re: Coinbase is launching support for the USDC stablecoin

#64

Post by DSingularity »

esotericn wrote: post #58

"Stablecoins" are neither "stable" or "coins". Blockchain is a Semantic Wasteland: https://news.ycombinator.com/item?id=18267585 There are a few cryptocurrencies that are actually interesting. This is yet another nonsense money grab.

In this instance I disagree. This is a smart contract which will create USDC for each USD that Coinbase reserves. In other words, each USDC has a single USD backing it. To back the guarantee they are slowing audits of their reserves. This one is pretty straightforward.

Re: Coinbase is launching support for the USDC stablecoin

#65

Post by orthecreedence »

Coinbase has USDC, Gemini has GUSD. Will be interesting to see how this plays out. I'm curious if adoption becomes a function of which fly-by-night exchanges start launching pairs.

But then again, if the fees are low enough (if my $1 truly gets me one token, and one token gets me $0.9999 back) these tokens are going to be useful in themselves without needing to be traded on seedy exchanges.

It would be great for taking micropayments on online services.

The thing I worry about is how these tokens are set up. If there is central control, can the governing bodies at any time decide to deactivate my tokens? I'd like to see the actual "contracts" behind these tokens. And even then, the contracts can change and be updated. Obviously there are some regulatory protections, but that won't fix people hacking these contracts.

I guess what I'm saying is, "hmm, interesting, I'll check it out in a few years." Until then I'll likely just use it for hedging against other cryptos while speculating if/when I decide to get back in the market.

Re: Coinbase is launching support for the USDC stablecoin

#66

Post by jabits »

JumpCrisscross wrote: post #48
Permit wrote: post #38

Earlier quoted context omitted.

Yes, but once I have acquired dollars and wish to send them to you I must involve a third party. Not involving that third party would be the sell here. I have no position in any cryptocurrency and am not trying to argue that USDC is better than USD. I'm just saying that stablecoins achieve most of the goals of a decentralized currency yet despite this they are not appealing to today's cryptocurrency community.

> once I have acquired dollars and wish to send them to you I must involve a third party Cash. (There is no way to send electronic dollars without involving a third party, though more money is laundered using dollars and euros than cryptocurrencies. I'd argue leaving a permanent, public record of transactions is a poor price to pay for decentralized electronic transmission, particularly given the centralized issuer a…

Ok, here’s a twenty in the palm of my hand...take it...oh wait...

Re: Coinbase is launching support for the USDC stablecoin

#67

Post by kolbe »

Permit wrote: post #11

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…

Unfortunately, its value is inalienably attached to the dollars that it can be redeemed for. And so long as Coinbase has to take legitimate AML and KYC measures, many people who need access to the redemption market will not have it (e.g. poor families using it for international remittances, and cartels).

Re: Coinbase is launching support for the USDC stablecoin

#68

Post by alistproducer2 »

Permit wrote: post #11

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…

This is wrong on several levels. Decentralization was not for transactions, it is for censorship resistance. These exchange stable coins fail this requirement. As anyone who has been licked out of an exchange account knows, your funds are never yours when they're on an exchange, much less if the only place to redeem those coins is a place that has locked you out.

Your observations about the community is flawed. Many are just speculators but there are many, like myself, who care about the technology and the core principles. For the latter, you need to be reading a place like bitcointalk.

Re: Coinbase is launching support for the USDC stablecoin

#69

Post by agorabinary »

cheeseomlit wrote: post #8
buildbuildbuild wrote: post #5

Excited to see a reputable company like Coinbase launch this. Hopefully with their reputation we can avoid another Tether situation. The US government should launch their own stablecoin. A digital US dollar is a national need that shouldn’t be managed by a corporation in my opinion.

USD is already digital, the vast majority of dollars in circulation are not bills/coins

Can you withdraw your USD to a flash drive?

Re: Coinbase is launching support for the USDC stablecoin

#70

Post by Xixi »

endijs wrote: post #7

I understand why stablecoin's are useful to the end user. I also understand how Bitfinex is cashing in on Tether. However how is Coinbase making money with USDC? They clearly will have considerable expenses (keeping reserve, legal team, development etc. etc.). But if I give them 1USD and get back 1USDC, which later can be exchanged back to 1 USD, where are they making money?

Basically interests: they are certainly targeting billions of dollars (or at least several hundred millions) of assets in custody. Assuming the US Federal Funds Effective Rate (currently at 2.19%) it can add up quickly.
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