Is it possible stable coins could have their own bank? - page 2.

Lakai01

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Quote from: mk4 on May 27, 2024, 05:17:15 AM

Not 100% sure, but I'm pretty sure USDT/USDC are pretty much 'programmable' as well, with their lock functions and stuff.

But yea, safe to assume that CBDCs will be far stricter as they're highly more likely to comply with regulations and stuff, so locking of funds are highly more likely in my opinion.

They are programmable, that is true.
However, the programmability of CBDCs (e.g. that of the digital euro) should go even further. One "feature", for example, is that unused capital expires after a few months and is set to 0. So you are forced to spend the money, saving is not possible with a digital euro.

Programmability can therefore also have a negative consequence Wink

mk4

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Quote from: Lakai01 on May 27, 2024, 02:44:07 AM

However, centrally issued CBDCs are the subject of much controversy, primarily due to their programmability (which ECB boss Lagarde, for example, has described as a "major breakthrough") and the resulting process of displacement of traditional currencies and cash.

Not 100% sure, but I'm pretty sure USDT/USDC are pretty much 'programmable' as well, with their lock functions and stuff.

But yea, safe to assume that CBDCs will be far stricter as they're highly more likely to comply with regulations and stuff, so locking of funds are highly more likely in my opinion.

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Quote from: Cryptomultiplier on May 26, 2024, 05:14:54 AM

Is it possible stable coins could have their own bank since they are backed by a country's currency like the U.S Dollar which they use to maintain a stable value?

They have their own banks, with private keys, with valuable assets to back their stable coins.

A biggest stable coin Tether USD has its transparency page and audit report.
https://coinmarketcap.com/currencies/tether/
Tether's transparency
Independent Auditor's report (March 2024)

Quote

Or also, knowing that stablecoins are different from cryptoassets which do not have assets as backings and are more volatile

If a stable coin is mint from thin air, without backed assets like US. dollar, gold, is it still a stable coin?

Its value will crash to $0 when people detect this terrible fact.
A deep dive into valuation and depegging of stablecoins

Lakai01

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Quote from: mk4 on May 27, 2024, 02:31:49 AM

I think what you're describing is pretty much a CBDC.

Exactly, he is describing a CBDC issued by a central bank, eg. the European Central Bank.
However, centrally issued CBDCs are the subject of much controversy, primarily due to their programmability (which ECB boss Lagarde, for example, has described as a "major breakthrough") and the resulting process of displacement of traditional currencies and cash.

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I think what you're describing is pretty much a CBDC.

Quote from: Cryptomultiplier on May 26, 2024, 05:14:54 AM

Or also, knowing that stablecoins are different from cryptoassets which do not have assets as backings and are more volatile, will in the future, the success of stablecoins not call for something like a bank or a recognized office building built to show legalization and acceptance as a means of payments for transactions and services?

I don't think it even matters much of stablecoins have their own bank. What matters most is that they have proof that these stablecoins actually have a 1:1 backing on whatever bank as long as the bank is decent.

adaseb

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They could have their own bank but that’s not the goal of stablecoins. When stablecoins were first released it was so users could transfer money from exchanges such as Bitfinex to exchanges which had tons of altcoins which the bigger exchanges didn’t have.

So the user wouldn’t need to sell their US dollars, buy bitcoin, send bitcoin to some alt exchange and then sell that bitcoin for US dollar and finally buy what alt coin they want. This is too many transactions and hence why stablecoins were introduced because you could send back and forth between exchanges.

There is no point is having a bank for stablecoins however. Just send to your exchange, sell for fiat and withdraw that fiat to your bank and buy whatever you want.

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Quote from: Cryptomultiplier on May 26, 2024, 05:14:54 AM

Is it possible stable coins could have their own bank since they are backed by a country's currency like the U.S Dollar which they use to maintain a stable value?

Or also, knowing that stablecoins are different from cryptoassets which do not have assets as backings and are more volatile, will in the future, the success of stablecoins not call for something like a bank or a recognized office building built to show legalization and acceptance as a means of payments for transactions and services?

Stable coins that runs on blockchain doesn't necessarily need banks because we get to store the coins in the blockchain itself so there is no job for bank in this process but that's different when it comes to CBDC cause it's backed to that fiat value of the country so mostly you need bank account to connect your CBDC wallet since that is the most preferred way for verification until now in CBDCs.

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Quote from: Cryptomultiplier on May 26, 2024, 05:14:54 AM

Is it possible stable coins could have their own bank since they are backed by a country's currency like the U.S Dollar which they use to maintain a stable value?

I assume that we are already into it. Yeah, unlike traditional banking, these days I am able to open a bank checking account online without visiting any branches; this is very much similar to registering an account in a crypto exchange with KYC. I agree there are few differences like debitcard, check facility, overdrafting etc.. but we can find other third party services to work with cryptocurrencies to avail exact similar functionalities.

I mean bitcoin was developed to provide banking facility to each and every human without trusting any central authorities including governments and here stablecoins providing additional layer of simplicity to take banking facility to needed people.

Quote from: Cryptomultiplier on May 26, 2024, 05:14:54 AM

the success of stablecoins not call for something like a bank or a recognized office building built to show legalization and acceptance as a means of payments for transactions and services?

Definitely will call. But, I believe we do not need any regulation/legalization for that to make it more common among all people; only awareness is enough. But, we need to remember stablecoins are not decentralized which means they may collapse at any time or government may seize. So, holding a big money in stablecoin is highly NOT recommended.

Cryptomultiplier

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Is it possible stable coins could have their own bank since they are backed by a country's currency like the U.S Dollar which they use to maintain a stable value?

Or also, knowing that stablecoins are different from cryptoassets which do not have assets as backings and are more volatile, will in the future, the success of stablecoins not call for something like a bank or a recognized office building built to show legalization and acceptance as a means of payments for transactions and services?

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