Quote:
Originally Posted by ShopCat
I think you misunderstand the uses of stablecoins, and personal bias informs your conclusions. Look into the decentralized finance space. Many governments will be coming out with their own "stablecoins" soon.
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I'm open minded on the topic. I did some research last night and read up on a lot - mostly from sites very pro-crypto. Unfortunately, on nearly all of these sites there is a lot of hyperbole, and and "this is coming" and "that is coming", but no real benefits to the whole DeFi model except for one - the ability to transact and buy/sell items without any identity attached. The *only* motive that I can think of that would require / benefit this is illegal activity (at the moment in time). If I'm buying a car from Mexico, it's not any easier or better to use Tether than it is to simply send a wire transfer from my US-based bank. The wire transfer is quick, easy, and if there is a problem, I can always get the bank involved to (possibly) resolve it. Unless I was buying a *stolen* car filled with illicit drugs or doing something else illegal, I don't see a benefit.
Again, I am open-minded. There was one blurb here and there about structured, programmed derivative contracts that are set in the code so that they can't be altered or defaulted on by the counter-party. That might have some remote, niche benefit when you're dealing with purchasing counter-party insurance contracts and you're not too sure of the viability of the party on the opposite side. But I don't know how those work (do they escrow the crypto so it can't be moved?). Seems complicated again, and these functions are already provided for fairly well in our established financial system.
I can see and understand someone's argument for "store of value" with a crypto like Bitcoin. But putting and keeping funds in a stable coin like Tether - it makes absolutely no financial sense - unless someone is laundering money?
If you have any links to share on DeFi that gives concrete examples of things that can be done in the crypto space that cannot be done with traditional banking (other than money laundering), then I'm very curious to learn more about them.
I don't have a bias either way, I just call it like I see it on this end.
-Wayne