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by TenJack 1744 days ago
Why not use a stablecoin? Or are they dealing with Bitcoin volatility in another way?
1 comments
Ancapistani 1744 days ago
What advantage would a stablecoin have over using the underlying currency directly?

It has the significant disadvantage of adding an additional trust entity (the backing bank) which could prove untrustworthy.

Over a long enough timescale, I would argue that all backing banks have proven to be untrustworthy.

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TenJack 1744 days ago
Doesn’t it seem concerning to tie a countries currency to something so volatile that it could literally halve over night? Not trying to argue. Just trying to understand.
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cwkoss 1744 days ago
Fiat currencies can go to zero in an instant via political changes. (Ex, see indian demonitization in 2016).

All forms of money have risks. I think the diversification of supporting BOTH USD and BTC seems to get a bit of the best of both worlds.

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TenJack 1744 days ago
Right so why not USD coin instead of Bitcoin?
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cwkoss 1744 days ago
USD-pegged stablecoins kind of have the worst of both worlds - the risks of crypto AND the risks of fed monetary policy. Stablecoins shouldn't be used as a store of value, only as a medium of exchange.
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TenJack 1744 days ago
You just said having USD was part of the best of both worlds (despite fed monetary policy) and Bitcoin has the risk of crypto as well. Seems contradictory
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