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Stripe Launches L1 Blockchain: Tempo

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Re: Stripe Launches L1 Blockchain: Tempo

#841

Post by thinkharderdev »

elteto wrote: post #553
graeme wrote: post #535

Earlier quoted context omitted.

Yes, you can absolutely do that with stablecoins. Why couldn't you?

How would the “out of thin air” value creation work in a blockchain ledger? Pardon my very naive understanding of both subjects.

As far as I understand, the backing assets aren't on-chain. I give tether $100, they create and issue me 100 USDT on-chain. But they can take my $100 and lend it out. Now whoever Tether loaned the $100 to has $100 and I have 100 USDT so $100 has been added to the money supply, just like with a normal bank.

Re: Stripe Launches L1 Blockchain: Tempo

#842

Post by justin66 »

pc wrote: post #46

There are lots of crypto skeptics on HN (and we ourselves were disappointed with crypto's payments utility for much of the past decade), so it might be interesting to share what changed our mind over the past couple of years: we started to notice a lot of real-world businesses finding utility in stablecoins. For example, Bridge (a stablecoin orchestration platform that Stripe acquired) is used by SpaceX for managing…

> so it might be interesting to share what changed our mind

One can look at Stripe's list of investors...

Re: Stripe Launches L1 Blockchain: Tempo

#843

Post by mdorazio »

chhxdjsj wrote: post #639
Liron wrote: post #396

Let me help explain whether blockchains are useful or not: They're not. The US gov let Circle be a less-regulated bank than other banks. This is called "regulatory arbitrage". You can take advantage of it by checking the box that you have a "blockchain". Stripe noticed "wow, things labeled blockchain are nice for some people to use" because of this dumb inconsistent banking regulation situation. Stripe doesn't mentio…

Less regulated? Circle has to keep 100% reserves backing all accounts whereas most US banks operate a low fractional reserve and lend mostly to billionaires funding moderately risky leveraged commercial real estate.

You’re conveniently ignoring what “reserves” means in the GENIUS act. Unlike regular banks, Circle can use US Treasuries instead of cash so that they earn interest and prop up US government debt at the same time. It’s a clever scheme, but not the same as being forced to hold fiat reserves.

Many other banking regulations also don’t apply. No FDIC insurance and most importantly none of the regulations that apply to true fiduciaries since they are only “custodians”.

Re: Stripe Launches L1 Blockchain: Tempo

#844

Post by nulbyte »

worik wrote: post #654
have_faith wrote: post #548

Earlier quoted context omitted.

In FIAT money lending is the act of money creation, rather than lending existing money held in account. I’m guessing that wouldn’t have a parallel with stablecoins because the technology won’t let you just make new money at will?

> In FIAT money lending is the act of money creation That depend on how you view money. Lending does increase the volume of money in circulation, in that sense it creates money. But that view is too simple to be useful. The regulators that regulate, and in particular control reserve ratios (complex calculations that banks have to make about the relationships between their various assets) and base interest rates are t…

> That depend on how you view money. Lending does increase the volume of money in circulation, in that sense it creates money. But that view is too simple to be useful.

Far from being too simple, it is the primary method of money creation in modern economies.

> The regulators that regulate, and in particular control reserve ratios (complex calculations that banks have to make about the relationships between their various assets) and base interest rates are the real creators of money.

Simply setting rates does not create money. It can influence it, but it is not the ultimate cause. Lending is. Reserve banks can and do lend, but commercial banks are responsible for the majority of money creation.

Re: Stripe Launches L1 Blockchain: Tempo

#845

Post by financetechbro »

thelittleone wrote: post #376
pc wrote: post #46

There are lots of crypto skeptics on HN (and we ourselves were disappointed with crypto's payments utility for much of the past decade), so it might be interesting to share what changed our mind over the past couple of years: we started to notice a lot of real-world businesses finding utility in stablecoins. For example, Bridge (a stablecoin orchestration platform that Stripe acquired) is used by SpaceX for managing…

Hey Patrick, When your algorithm freezes a legit business's funds, you hold them indefinitely and can invest them for your own profit. The only recourse you offer is mandatory arbitration with an arbitrator Stripe chooses. How is that a fair system?

It’s a fair system for stripe!

Re: Stripe Launches L1 Blockchain: Tempo

#846

Post by Kbelicius »

sunshine-o wrote: post #603
9dev wrote: post #441

Earlier quoted context omitted.

Other countries managed to regulate their banks to innovate just fine without blockchain technology, though. It doesn’t always need a startup to disrupt something by flipping the finger to lawmakers. Sometimes humble regulation is enough. Take SEPA as an example: I can transfer money free of charge to any European bank account, in a few seconds.

> Sometimes humble regulation is enough. Take SEPA as an example: I can transfer money free of charge to any European bank account, in a few seconds. SEPA was a success but it was only a first step to modernise the banking system. The following regulations/directives like PSD2 failed in my opinion. The ECB also had one of those CBDC built much earlier than people have been told. They already had something quite advan…

> The ECB also had one of those CBDC built much earlier than people have been told. They already had something quite advanced around 2020, with a optimist launch date in 2022 I believe.

> It obviously failed miserably

They had a CBDC but hid it from everyone... but then somehow it failed miserably. If it wasn't released, how? They even had it before they decided to have it (2021). This seems just like a load of bullshit.

Re: Stripe Launches L1 Blockchain: Tempo

#847

Post by Saline9515 »

sunshine-o wrote: post #603
9dev wrote: post #441

Earlier quoted context omitted.

Other countries managed to regulate their banks to innovate just fine without blockchain technology, though. It doesn’t always need a startup to disrupt something by flipping the finger to lawmakers. Sometimes humble regulation is enough. Take SEPA as an example: I can transfer money free of charge to any European bank account, in a few seconds.

> Sometimes humble regulation is enough. Take SEPA as an example: I can transfer money free of charge to any European bank account, in a few seconds. SEPA was a success but it was only a first step to modernise the banking system. The following regulations/directives like PSD2 failed in my opinion. The ECB also had one of those CBDC built much earlier than people have been told. They already had something quite advan…

SEPA allows this in theory; in practice, for amounts >10k€, most banks will require you to provide proofs for the transaction due to the maximalist AML laws in the EU.

My bank requires me to download a PDF on their website, print it, fill it out by hand, scan it, and then send it by mail. After a few days, someone will decide to allow it (or not). If it is refused, I don't get any reason why and have to call the client service for clues.

Re: Stripe Launches L1 Blockchain: Tempo

#848

Post by utyop22 »

pc wrote: post #452
mbesto wrote: post #425

Earlier quoted context omitted.

> Instant on-chain transfers avoiding trapped liquidity. If you're transferring money from financial institution A to institution B, and the transfer takes a day, you're either slowed a day in taking the next step or you have to somehow cover that float. These are slow by design - abuse/fraud. How does blockchain solve that issue? > * Fees that are lower than cards. Card payments are instant, which is often valuable…

In these matters, I always try to keep in mind that technologies aren't themselves disruptive; customer choices are. It'll be interesting to see what customers choose in the years to come.

"In these matters, I always try to keep in mind that technologies aren't themselves disruptive;"

That is NOT TRUE! Technologies that are disruptive are those that intrinsically possess features that present benefits that exceed the switching costs of existing technologies. Therefore they are inherently disruptive. The timeline of product adoption is decided by consumers yes. Which is actually preceded by (and accelerated by) visionary leaders who can figure out what the benefits of said technology are, where to best use it and then tell people about it (market the technology).

Here's a simple example: graphical user interface. Anyone who saw it early on at Xerox knew it was so obvious. But the timing of its mass appeal, adoption and who would produce the preferred interface was questionable.

This comment alone makes me incredibly skeptical about the way you think.

Re: Stripe Launches L1 Blockchain: Tempo

#849

Post by Kbelicius »

risyachka wrote: post #577
dperfect wrote: post #348

Earlier quoted context omitted.

It sounds great, but every time I see this argument, I end up going down the rabbit hole of actually studying how stablecoins operate. And every time, I come to the same conclusion: they always rely on trust in an off-chain oracle or custodian. At that point, a shared ledger implemented with traditional databases / protocols would be faster, easier, and more transparent. Bitcoin (and possibly a few others) is one of…

>> So what are stablecoins really trying to do? Circumvent regulation? Implement something the banks just aren't willing to do themselves? yeah and this is great. I couldn't care less for banks protection. Revolut blocked my account with 8k on it for 8 months, though their app said it will be max 2 weeks. Customer support ignored me for 6 months until I said I am going to court. So yeah fuck them. The is a case for b…

> The is a case for banks but there is also a case for me keeping a chunk of my money in stable coins so its actually mine.

Considering that stablecoin wallets can also be blocked what is the case for you keeping a chunk of your money in them?

Re: Stripe Launches L1 Blockchain: Tempo

#850

Post by [deleted] »

throwup238 wrote: post #179
pc wrote: post #46

There are lots of crypto skeptics on HN (and we ourselves were disappointed with crypto's payments utility for much of the past decade), so it might be interesting to share what changed our mind over the past couple of years: we started to notice a lot of real-world businesses finding utility in stablecoins. For example, Bridge (a stablecoin orchestration platform that Stripe acquired) is used by SpaceX for managing…

As an extreme skeptic of crypto in general, the uses for stablecoins seem obvious as long as they’re transparently backed or used only for short term transactions before going back into fiat. Even just paying a foreign contractor is a pain in the ass sometimes so if a bunch of banks and financial service providers around the world manage to make international transfer easier via the coins, that’s great. Not everyone…

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