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by koakuma-chan 80 days ago
you can send them around easily without having to deal with bullshit payment systems
4 comments

No-one in the real world wants to be paid with a $USR. Most everyone wants a cashapp/zelle/PayPal/wire transfer. The bullshit payment systems gained ground on crypto while crypto became more difficult/less usable
If you track the FATFs crushing of bearer bonds, bearer notes, non-KYC/non-AML offshore banking, and Hawala it almost perfectly tracks with the rise of crypto.
PYUSD is run by PayPal afaik.
I don't know what USR is, but I would prefer to be paid in USDT or USC if Wealthsimple supported it as deposit method. When I withdraw, I do Deel -> Wise -> Interac e-Transfer -> Bank -> Interac e-Transfer -> Wealthsimple. This is incredibly stupid and I am forced to buy Canadian dollars. For groceries or electronics, you can buy gift cards using crypto.
Monero is better for that task.
But you do have to deal with bullshit payment systems. I can't receive stablecoins in my regular bank account, I'd have to set up some crypto nonsense on DankRocketBets or whatever for it to even work.

Why would I do this when I can already receive actual USD without any extra ceremony?

Stablecoins are a solution in search of a problem.

The problem presents itself when you have dirty money to launder. It isn't a product for non-criminals but they have to convince enough gullible people to participate and blend in with them.
Crypto is how you can invest in crime without doing crime.
you can receive. you just need to set it up.

there are like 50 (many YC) startups fixing this today trying to offer your the best and cheapest service

Perhaps you meant: stablecoins are a scam in search of a victim.
If your employer does direct deposit of USD into your USD bank account, you don't need stable coins. This is not the case for most people outside of the U.S.
I am outside the US. Many of my assets are in USD and USD-denominated securities. I've never touched a stablecoin.

Waiting to hear what "most people outside the US" are supposed to need those stablecoins for.

Most people don't realize they're inside a plexiglass shielded financial jail until they try to do something like wiring money for some legal activity in someplace spicy or on the FATF grey list.

If you fall into the middle bands of uses, or in the upper class that can just bend or make the rules, then the financial system is well oiled and it looks like the people questioning it are just cranks.

It's true that a lot of those in the outer bands are criminals but others are things like "buying a truck to build an orphanage for starving Iraqi children just outside of terrorist territory" or "wanted an investment visa in some corrupt island paradise and as it turns out no bank will open up account for purposes of 'international wires to the Comoros' "

Oh yeah, "most people outside the US" are looking to build orphanages in deeply sanctioned war zones. How could I have forgotten.

Come on now, that's absurd. If this is your best use case for stablecoins - groping for concocted scenarios to rationalise their existence - I stand by what I said earlier: they're a solution in search of a problem.

One of the two is very close to something that actually happened to me. I tried to open up a bank account for paying immigration related costs to a particular shithole country, which is both legal and was part of a fully legal endeavor, but no bank would do it.

The other example is somewhat concocted but rooted in the time I spent in Iraq and noting almost all transactions are performed outside the banking system, in part because banking is inaccessible and people often don't have access to KYC documents.

It's really not absurd. As soon as you start trying to do anything interesting the KYC/AML burdens get greater until eventually you realize the compliance officers are just trying to get you to go away (or just deny you outright), get interesting enough and then suddenly despite fully complying with the law you find the walls are closed around you. Most people never find out because they never have occasion to try, they do a bunch of boring domestic transactions plus maybe some international trade with a few well known entities, then they just shout people are making up absurdities.

This comment isn't really beating the rap that the primary purpose of stablecoins is to facilitate crime.
Running down a list of corner cases means that you've already accepted the central idea. It's a classic internet troll-as-in-fishing gambit for derailing conversations that's been weirdly normalized.
Those stablecoins are useful when you want to do crime.
Until it becomes another bullshit payment system