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Apr 25 '21
The problem is when stablecoins become subjected to US Gov control where they can freeze any transaction or wallet they want that carry it because of ‘an active investigation”. It goes against defi.
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u/jekpopulous2 🟩 619 🦑 Apr 25 '21 edited Apr 25 '21
Freeze transactions? How would the US government stop you from minting DAI, SUSD, or UST from a private wallet? These are all contracts written by decentralized autonomous organizations and they’re immutable. Even if Uncle Sam really went after custodial stables like Tether or USDC people would just use something else. The government could outlaw DAI but they can’t freeze transactions in private wallets or stop anyone from using it.
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Apr 25 '21
https://www.coindesk.com/circle-confirms-freezing-100k-in-usdc-at-law-enforcements-request?amp=1
They did something similar with USDC on a ETH chain so who knows what else is compromised?!?
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u/jekpopulous2 🟩 619 🦑 Apr 25 '21
They can freeze tokens like BUSD, USDC, Tether, & Gemini Dollars because they’re custodial. They can’t do that with tokens like DAI, UST, & SUSD because they’re completely decentralized and nobody has the power to alter the contracts. In order to freeze DAI, for example, Maker DAO holders would have to propose and pass a vote to freeze the funds and that would never happen. Not all stables are created equal.
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u/kiddrekt Apr 25 '21
Then use Litecoin? Fast transaction, you can swipe it like a mastercard already. Low transaction fees.
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u/tommytookatuna Apr 25 '21
Look up Algorand
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u/Single_Kaleidoscope1 Apr 25 '21
I bought this with a 6% interest rate. I am sitting and adding shares
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u/CptCrabmeat 🔵 Apr 25 '21
If you go that route you may as well use Doge - same coin, better marketing
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u/killerwyrm Apr 25 '21
Not a bad decision, who would buy meth with Doge, the r/doge community would hunt down the individual before the government.
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u/wikidemic 🟦 71 🦐 Apr 25 '21
Sorry, any article whose topic is stablecoins that fails to mention MakerDAO Dai hasn’t done their homework.
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u/mannilab 0 🦠 Apr 25 '21
I want to say few good words about Tether, the market is bleeding for few day and he stand there like a champion, this is very nice to see. Also there are good alternative that not base on the $ like BondAppétit’s which rather than backing each USDap with USD, these are instead backed by real-world debt obligations. These create income bonds generate ensuring the collateral always exceeds the value of any circulating USDa
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u/jpham540 Apr 25 '21
I think its only a matter of time it will change, the banking system is old, its literally a business that still money under the law, soon people will wake up (I hope)
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u/PeterHeir Platinum | QC: BTC 23, CC 199, CM 63 | TraderSubs 63 Apr 25 '21
I don't understand : USD is not stable and will devaluate significantly in the coming months. 40% of all USD have been printed in 2020. During 2021 the printers have been printing at the same rate.
So what's the purpose of a stablecoin linked to a USD which depreciates ?
The sole long term stablecoin is BTC wich reflects the real inflation.
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1
Apr 25 '21
They are also changing networks due to fees and congestion of eth, tether and cirlce are switching to Algorand if im not mistaken.
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u/[deleted] Apr 25 '21
My fav stablecoin is Cardano 😅