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I don’t understand all the immediate negativity surrounding this. Can someone in the know explain what the ramifications are?
People who hate crypto will hate anything that has anything to do with crypto. People who love crypto will hate anything that has anything to do with legacy censorship-prone fraudulent financial institutions like PayPal. Who is this for?
Earlier quoted context omitted.
It's a reason not to use dollars in any form if you are outside of US (and probably inside as well).
Usually the local money is even worst. (Hi from Argentina! Not so bad this year so far...)
By swapping the volatility from crypto to lower USD volatility, they effectively create a funnel from riskier currencies into dollars.
Which is the same state that previously existed... except now facilitated by the crypto industry's global accessibility/UX and with less international regulation.
Blessing USD stablecoins at the US federal level was a smart move (from the US-perspective) as it creates a much bigger demand for dollars, and if the US didn't do it then China or OPEC would have eventually gotten around to it as an end-run around dollar hegemony.
Winners:
- Crypto industry (more volume to skim)
- US Treasury (more demand for debt)
- Countries with less-stable currencies (lose further control of monetary policy)
- China / OPEC (miss opportunity to push dedollarization further)
- Money laundering (once volume grows, KYC and traceability will follow)Holding money (or crypto) in PayPal is a terrible idea. They are not a bank, they do not abide by banking regulations. They can lock you out of your account and your money at any time and leave you going in circles with their offshore support. Yes, they are somewhat of a necessary evil if you do any online peer-to-peer buying/selling, since they are the only money transfer service that provides some level of "buyer p…
Why does their support being "offshore" matter at all? If they wanted to provide good, user-friendly customer support, they would, regardless of where the reps are?
Earlier quoted context omitted.
> You may not receive any interest on your stablecoin balance, but the issuer certainly does A bunch of zero marginal cost capital funding purchases of U.S. debt would absolutely push down rates, possibly lower than inflation, because if you’re a stablecoin issuer you’re not constrained by yield. This is a dumb-money venture. And if there is this much money that is this dumb, Treasuries aren’t the worst place for it…
All those trilions and trilions of dollars of stablecoins sure are bringing down the us' cost to borrow.
If you think trillions of dollars in de novo price-insensitive demand doesn’t move a market, even one as deep as the Treasury market, I’ve got a stablecoin to sell you.
one thing with these stablecoins is they're pushing to buying of 'us-debt'. congrats if you buy a stablecoin - you've effectively financed the US gvt at 0%. now the US gvt can inflate away that debt at 0 cost to them, and pass on the cost to you. that's why a bunch of these stablecoin companies are pushing it as a way to save for people in distressed economies. what a way to steal from the poor. that's why the crypto…
USDC on Coinbase yields interest. The USDC people make a little spread on it, but you aren't financing the US government at 0%, you're financing them at market rates. There is counterparty risk just like with a bank. Unlike a bank, there are liquid markets onchain for other fungibles.
Holding money (or crypto) in PayPal is a terrible idea. They are not a bank, they do not abide by banking regulations. They can lock you out of your account and your money at any time and leave you going in circles with their offshore support. Yes, they are somewhat of a necessary evil if you do any online peer-to-peer buying/selling, since they are the only money transfer service that provides some level of "buyer p…
Plus they have a history of freezing people’s money for months on end for flimsy reasons.
one thing with these stablecoins is they're pushing to buying of 'us-debt'. congrats if you buy a stablecoin - you've effectively financed the US gvt at 0%. now the US gvt can inflate away that debt at 0 cost to them, and pass on the cost to you. that's why a bunch of these stablecoin companies are pushing it as a way to save for people in distressed economies. what a way to steal from the poor. that's why the crypto…
What is this paypal-corp.com website? I immediately suspected phishing when I saw that. Doubly so when the feature being discussed is crypto related.
I agree that it is confusing.