are stable coins BUSD & USDC safe from cyber attacks

o48o

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Quote from: Yogee on March 04, 2022, 06:33:56 PM

Quote from: anni007 on March 04, 2022, 12:14:13 PM

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I am just thinking BUSD is backed by the dollar, and dollars are stored in banks and if/when the banking system is affected then how would that affect stable coins which are fully backed by the dollar. Even if you do have your balance proof on your hardware wallet, will you ever get that money?

I would love to see how Paxos would answer this question but I doubt if they have any representative here. It's their job tl ensure reserve is sufficient.

BUSD is basically a USD on the blockchain so if the banking system fails then everything else that relies on this institution fails. Your BUSD will be worth like any other valueless paper.

Yes, and if USD fails, your cryptos aren't main thing to worry about anyway because everything will be in full blown chaos, internet as we know it will most likely shut down and there will complete anarchy takes over. Crypto most likely doesn't have value on this scenario as all people want is safe shelter, medicine and clean food & water. Working fiat money is the oil that runs the economy. Without it everything will spiral out of control.

nimogsm

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To make you feel safer, buy several options at once and keep them with you.I don't think there will be any problems in the near future, just keep your assets not on the stock exchange, but only on wallets that you trust, then no cyber attacks are scary.

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Quote from: anni007 on March 04, 2022, 12:14:13 PM

I am just thinking BUSD is backed by the dollar, and dollars are stored in banks and if/when the banking system is affected then how would that affect stable coins which are fully backed by the dollar. Even if you do have your balance proof on your hardware wallet, will you ever get that money?

Basically there is no definitive proof that BUSD is directly related to banks. BUSD is
a private USD owned by the Binance network that so far has absolutely no contract with the bank.
If you get BUSD you can not directly put it into money in the bank. but because the BUSD is fully owned
by binance then binance will buy the BUSD equivalent to the current fiat price and will put the equivalent money into your bank.

Quote from: anni007 on March 04, 2022, 12:14:13 PM

Please dont tell me the goverment will ensure your money/saftey etc...we know what happen in the USA in 1971..the great depression, bank closures and bank runs etc.

Of course, the bank has no right to guarantee the safety of your assets here.
Even when you send from your personal wallet like BUSD to the wrong wallet no one can be held responsible for it,
unless you find out who owns the wallet and ask him to return your assets if he wants.
In cryptocurrency even though it is centralized but has at least decentralized , even though BUSD is a stable coin when
you have any kind of error to lose your assets , no one is responsible for it.

$anounimus$

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If I'm not mistaken, BUSD and USDC are built to lessen some of the risks of this kind of thing. It is because of the smart contracts that govern their value that they are 100% safe from cyber attacks. Plus, the coins are linked to a real-world asset portfolio, which means that their value will stay the same.

BUSD and USDC give the flexibility of a cryptocurrency platform with the stability of government-backed money. Because both parties in the transaction must be strong enough to keep things stable, it isn't likely that there will be any major problems in this area in the future. They may not change the way money looks in general, but stable coins are a good start toward safer transactions.

tbct_mt2

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Quote from: lornadane on March 04, 2022, 09:41:40 PM

You don't need to be afraid to hold a stable coin because it also has security like other cryptocurrencies.
Likewise with USDT, but you need to know that USDT is not fully protected by the dollar because it has a different fiat. USDT can also be stored wherever we want as long as the wallet we hold is safe and reliable.

It is not true. They are not really decentralized like Bitcoin. Imagine how less decentralized or you can call it centralized when Binance Smart Chain has very little validators on its network. The figure is very small compares to Ethereum network.

Worse, have you known that USDT can be frozen even in your wallet?

PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets
USDT banned addresses

lornadane

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You don't need to be afraid to hold a stable coin because it also has security like other cryptocurrencies.
Likewise with USDT, but you need to know that USDT is not fully protected by the dollar because it has a different fiat. USDT can also be stored wherever we want as long as the wallet we hold is safe and reliable.

anni007

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Quote from: Yogee on March 04, 2022, 07:23:41 PM

Quote from: anni007 on March 04, 2022, 06:48:32 PM

....
I think for now my main concern is that if the global financial system came under attack e.g. wiping out peoples banks accounts, then my BUSD is stored on my hardware wallet, so would I still be able to redeem it. As I dont think that a cyber attack on the financial system will make the goverments do a currency reset over night, although they have a CBDC ready and FED coin and have been testing cryptos but it just wont happen just yet. The cyber attack may also be an inncentive to be used to move to a new systems and get the people to agree reason being for the peoples security.

I guess BTC may be safer in the future when it isnt so volatile, as store of value.

Hard to imagine but I guess it will be stuck in your wallet for a long time.

This will depend mostly on how Paxos and Binance deals with the scenario. If USD reserves are gone in an instant due to a cyber attack then all that's left is their other assets to back up each minted BUSD but even that will take time to implement.

oh another thing, did you know that due to regulatory requirements in order for the stable coin to be used in x country, the stable coins have in their code an option which can actual freeze your stable coins. Even BUSD has this code option, it just needs to be set to enabled and can be frozen for a specific person, but this would be mostly likely done at a request by x government. However these days we know that you don’t even need to break the law to have your accounts/money frozen!

anni007

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Quote from: Yogee on March 04, 2022, 07:23:41 PM

Quote from: anni007 on March 04, 2022, 06:48:32 PM

....
I think for now my main concern is that if the global financial system came under attack e.g. wiping out peoples banks accounts, then my BUSD is stored on my hardware wallet, so would I still be able to redeem it. As I dont think that a cyber attack on the financial system will make the goverments do a currency reset over night, although they have a CBDC ready and FED coin and have been testing cryptos but it just wont happen just yet. The cyber attack may also be an inncentive to be used to move to a new systems and get the people to agree reason being for the peoples security.

I guess BTC may be safer in the future when it isnt so volatile, as store of value.

Hard to imagine but I guess it will be stuck in your wallet for a long time.

This will depend mostly on how Paxos and Binance deals with the scenario. If USD reserves are gone in an instant due to a cyber attack then all that's left is their other assets to back up each minted BUSD but even that will take time to implement.

From my research USDT is not fully backed by dollar, some of it was back by investment in the chinese markets including evergrand which has recently collapsed, they have been involved in some shady stuff.

Yogee

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Quote from: anni007 on March 04, 2022, 06:48:32 PM

....
I think for now my main concern is that if the global financial system came under attack e.g. wiping out peoples banks accounts, then my BUSD is stored on my hardware wallet, so would I still be able to redeem it. As I dont think that a cyber attack on the financial system will make the goverments do a currency reset over night, although they have a CBDC ready and FED coin and have been testing cryptos but it just wont happen just yet. The cyber attack may also be an inncentive to be used to move to a new systems and get the people to agree reason being for the peoples security.

I guess BTC may be safer in the future when it isnt so volatile, as store of value.

Hard to imagine but I guess it will be stuck in your wallet for a long time.

This will depend mostly on how Paxos and Binance deals with the scenario. If USD reserves are gone in an instant due to a cyber attack then all that's left is their other assets to back up each minted BUSD but even that will take time to implement.

Yurkov

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Stable coins are as safe as any other cryptocurrency. It is up to you how you protect them. USDT is a token on the Ethereum platform (ERC20) so you can store it on multiple hardware wallets.
The only thing I do not like about USDT, is that it is a centralized coin so it does not fulfill all the conditions of a real cryptocurrency, but anyway in my opinion it is very much needed in the market.

anni007

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Quote from: Yogee on March 04, 2022, 06:33:56 PM

Quote from: anni007 on March 04, 2022, 12:14:13 PM

...

I am just thinking BUSD is backed by the dollar, and dollars are stored in banks and if/when the banking system is affected then how would that affect stable coins which are fully backed by the dollar. Even if you do have your balance proof on your hardware wallet, will you ever get that money?

I would love how Paxos would answer this question but I doubt if they have any representative here. It's their job tl ensure reserve is sufficient.

BUSD is basically a USD on the blockchain so if the banking system fails then everything else that relies on this institution fails. Your BUSD will be worth like any other valueless paper.

As of yet I think I am more concerned about the simulated global cyber attack on the finance sector, and even though the dollar will collapse in the coming years I know it wont happen this year. The purchasing power will decline over the coming years, as it already has when you compare gold price: dollars required, we need more dollars now to buy the same amount of gold. I think for now my main concern is that if the global financial system came under attack e.g. wiping out peoples banks accounts, then my BUSD is stored on my hardware wallet, so would I still be able to redeem it. As I dont think that a cyber attack on the financial system will make the goverments do a currency reset over night, although they have a CBDC ready and FED coin and have been testing cryptos but it just wont happen just yet. The cyber attack may also be an inncentive to be used to move to a new systems and get the people to agree reason being for the peoples security.

I guess BTC may be safer in the future when it isnt so volatile, as store of value.

Yogee

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Quote from: anni007 on March 04, 2022, 12:14:13 PM

...

I am just thinking BUSD is backed by the dollar, and dollars are stored in banks and if/when the banking system is affected then how would that affect stable coins which are fully backed by the dollar. Even if you do have your balance proof on your hardware wallet, will you ever get that money?

I would love to see how Paxos would answer this question but I doubt if they have any representative here. It's their job tl ensure reserve is sufficient.

BUSD is basically a USD on the blockchain so if the banking system fails then everything else that relies on this institution fails. Your BUSD will be worth like any other valueless paper.

JeffBrad12

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Quote from: anni007 on March 04, 2022, 12:14:13 PM

Is stable coin BUSD which is 1:1 dollar backed via PAXSO safe when stored on a hardware wallet vs keeping money in the banks. Recently countries have been doing cyber attack simulations, as they see it as a potential threat close to the future. They stated it can effect the global financial system, there even being potential of wiping out peoples banks accounts. Not sure if people are aware that there were virus breakout simulations done by USA late 2019 also and then we had a covid breakout (just saying).

I prefer to keep BUSD over keeping my money in the bank. Im always withdrawing the fiat money when i need it but to be honest im actively using BUSD and sometimes USDT and USDC too. It's safe when stored on a hardware wallet. As long as you can keep your seed safe and it will be safe forever.
I have stored all of my assets in my hardware wallet.

Quote from: anni007 on March 04, 2022, 12:14:13 PM

I am just thinking BUSD is backed by the dollar, and dollars are stored in banks and if/when the banking system is affected then how would that affect stable coins which are fully backed by the dollar. Even if you do have your balance proof on your hardware wallet, will you ever get that money?

I know your main concern and USD used to back BUSD stored in FDIC https://www.quora.com/What-stable-coin-should-I-use-on-Binance-USDT-or-BUSD
If that was happening and then so many parties will be loosing their interest to use bank. At least the bank will be bankrupt. If that will happen and im also sure that your stable coin will not credible anymore.

Quote from: anni007 on March 04, 2022, 12:14:13 PM

Please dont tell me the goverment will ensure your money/saftey etc...we know what happen in the USA in 1971..the great depression, bank closures and bank runs etc.

Yeah anything can happen anytime but it may not happen this time.

anni007

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Is stable coin BUSD which is 1:1 dollar backed via PAXSO safe when stored on a hardware wallet vs keeping money in the banks. Recently countries have been doing cyber attack simulations, as they see it as a potential threat close to the future. They stated it can effect the global financial system, there even being potential of wiping out peoples banks accounts. Not sure if people are aware that there were virus breakout simulations done by USA late 2019 also and then we had a covid breakout (just saying).

I am just thinking BUSD is backed by the dollar, and dollars are stored in banks and if/when the banking system is affected then how would that affect stable coins which are fully backed by the dollar. Even if you do have your balance proof on your hardware wallet, will you ever get that money?

Please dont tell me the goverment will ensure your money/saftey etc...we know what happen in the USA in 1971..the great depression, bank closures and bank runs etc.

I would appreciate thoughts from people who actually understand this topic. Thanks.

Topic: are stable coins BUSD & USDC safe from cyber attacks (Read 113 times)