Topic: Stablecoins can be frozen on the ETH blockchain (Read 346 times)

Good point. It has always been about money than anything else. As long as a centralized stablecoin is able to make issuers rich, nothing else matters. The average person needs to be aware about the underlying risks of a centralized stablecoin before deciding to invest in it. While ETH is a decentralized blockchain, the fact that it's programmable, allows developers to create anything to their heart's content. Security tokens and centralized stablecoins can be easily regulated due to the way they're designed. They greatly fit into today's regulatory crypto landscape. Governments can simply contact stablecoin issuers to freeze funds of an specific person in an instant. Which is why, I believe that both USDT and USDC will serve as the "holy grail" of modern banking in the not-so-distant future.

People who want the "best of both worlds" will simply choose DAI as their stablecoin of choice. DAI is decentralized and collaterized by crypto assets in order to maintain its price of $1 USD per coin. It's not perfect, though. But I'd prefer to use DAI in the world of "De-Fi" than centralized stablecoins like USDC or USDT subject to manipulation and fraud. Ultimately, people will decide which stablecoins will remain in the scene and which stablecoins will fade into oblivion. Just my opinion

You should check the news, criminals love to use fiat in their illegal activity more than crypto. This kind of action to crack down on assets involve in illegal activity is just a child play for both police and criminal.

At some point, full decentralization is very hard to achieve when the product itself is built by a specific company/specific team

However here comes the problem, not much people in the scene actually care if one Blockchain/Crypto is really decentralize or not, what they mainly care is if they can make money, if they can transfer coins here and there

I wouldn't say being a semi centralized platform is entirely bad because judging from such cases where coins are stolen, it will be very subjective here
Let me put in this way, if your parents who are not a tech savvy person, and they got scammed for $100,000
Unless there's sort of smart contract who can prove that the specific $100,000 belongs to your parents and retrieve it back
Else, Decentralized doesn't help at all in this case

Thus, my best take for a full decentralization to become perfect would only took place when the whole industry itself is very solid
Else, decentralization itself is still a system with flaws

the problem is that most people use usdt and usdc to make transactions so that they don't pay much attention to what is said because the velocity of money will continue so nobody can stop this, even with the news that you convey.

What if governments and stablecoin issuers decide to freeze your assets even when you're not doing anything wrong? The fact that they can consider certain transactions to be suspicious, could lead them towards taking such action without thinking it twice. With the way things are heading for the stablecoin industry, banking is now being "reimagined" on the Blockchain. Most people don't care about this at all, since they're still using centralized services to get access to crypto. As long as people continue to support centralization, things won't be going anywhere. At least, we have a decentralized stablecoin (DAI) which gives people an "escape route" in the world of "De-Fi". The only issue is that "DAI" is not backed by real world assets, but rather "collaterized" by crypto based on algorithms. It can go down the drain if ETH experiences a "bloodbath" in price on the market. We'd need more decentralized stablecoins in order to minimize risks as much as possible.

In the event centralized stablecoins become a failure, there will always be a "Plan B". They won't have a negative impact over the crypto market in the long term due to the market's resiliency and dependence of Bitcoin as its reserve currency. If centralized stablecoins like USDC and USDT die in the future, the crypto market will experience a massive "bloodbath" in the short term. Just my opinion

We need to be more careful about any stranger when sent or receive stablecoins from now on. You won't want a stranger to leave a trail of dirty money on your address and police to have a legit reason to freeze your whole address because of it.

I did not think it was possible to block, freeze the funds in stable coins of one person but of all the coins through a particular smart contract, it is seen that he will have done something unclear, but blocking the funds in fact makes the creators of tether look like a bank

If you're thinking like that then I've a bad news for you. You're not going anywhere since this whole market is centralized as f. If your address is marked, you won't to cash that money at any exchange.

What about DEX or uniswap can these dex and some Defi projects freeze the DAI?
It's becoming unacceptable already that we are all controlled becuase of the CEX and authrorities watching transactions. Despite these we still can't see people moving into the DEX, I hope we don't see anyone's funds frozen on their eth wallet and on CEX before we realize the warnings are true.

Some stable coins are centralized, USDC and USDT for example are both centralized stable coins, what I'm not going to accept is the freedom of allowing criminals to use these centralized coins to embezzle illegal money, what do you think should happen? Centralized or not there should be no room for illegal acts in crypto world

This is not good for me, what happen if we want to sell it because something important but our token is freeze. Cryptocurresny is decentralized no one can control our money, whatever the reason behind it, Im not agree about token freeze. I will stay away from stablecoin like that, real crypto is not centralized

DAI stablecoin is better because it can't be freezed like USDC but DAI address that get used for any illegal things can still get blacklisted, meaning it's been tracked every minutes by hidden eye lol, once the funds in the DAI address sent out to an exchange it will be freezed.

Good, it's one of the best ways to get rid of criminals in crypto space, we've had enough really, very soon Fiat will be more safer for criminals than crypto, I'm sure that address had something to do with illegal activities or money fraud

By the request from law enforcement. Its really going to be uncomfortable sending your USDT and USDC to your eth address during the next bear market.  We can't be sure if law enforcement will request freezing for whatever reason they could have one day and you get to register KYC to their database before unfreezing which is crazier.

But if DAI isn't a solution according to the article, which is?

Stablecoin on eth blockchain can be freezed if the money isn't clean or it from any illegal activities, why would you have to worry about this if you aren't into any illegal stuffs? Also any address can be blacklisted or freeze, it doesn't have to be stable coins

As long as the government has a good reason to freeze someone's assets on-chain, no matter stable coin or cryptos, I have no problem with that. Let be real, a lot of criminal activity abuse cryptos to carry out their works.

I think not only stablecoins, other tokens that are under the ETH network can also experience the same thing. ETH has a smart contract to arrange for a token to be sent or not, and not only that there are many other things.

Kinda disagree on this.  Market trades will continue even without stablecoins.  Besides, cryptocurrency market had been long functioning even before the creation of these stablecoin.



This is expected, cryptocurrency is created and programmed by people, they can always modify the codes to fit what they wanted on it.  This makes me worry about one day, all we knowned decentralized cryptocurrency will be tweaked to become centralized for the developer to be able to control the flow of transaction and this case with stablecoin is possibly the start of it.

You may cons with it but there should be another reason for that just like such ability can also be used to frozen the stolen amount. That can prevent the DAO to happen again.
There will always be pros and cons for that.

Yes, that is that. If it is an illegal stablecoin and there are already obvious potential risks attached to I, then I see nothing wrong if it is frozen. Meanwhile, there are still so many of them that need to be stopped and not only ISDC. A coin whose developer is always making false claims need to be stopped. USDT is in line. If they are stopped, it will serve as a deterrent to others planning to issue theirs too.