[irishcoffee]

At the end of the day, for better or worse, the US dollar is backed by the US military. Virtual coins are backed by the greater fool.

What a strange toss-up.

[Onavo]

But the stable coins are also backed by the US military. All major USD stablecoins have sanctions mechanisms baked into their smart contract.

See for yourself the blacklist features

https://github.com/circlefin/stablecoin-evm/tree/master/scri...

[anukin]

Usdc is backed by US dollar denominated treasuries for most major issuers.

[bandrami]

It's broadly agreed that hasn't been the case for a while now, but that at the moment it's better for everybody if we pretend it still is

[Hamuko]

Is there actually any proof of this or is it Tether-tier magic money?

[zx8080]

> US dollar is backed by the US military.

No, it's not. It's not possible to come to the US soldiers with a bunch of US dollars and some demands and get what's demanded in return for the dollars.

Only trust of the other market participants backs the US dollar.

[direwolf20]

It's the other way around. If you don't trade in dollars, the military comes and demands that you do.

[RealityVoid]

Is the peso backed by the Mexican government? Because I'm afraid of all these militaries coming and knocking down my door to use their money.