Topic: Stablecoins can be frozen on the ETH blockchain - page 2. (Read 369 times)

Exactly. Most people don't care about centralization as long as they're able to make money in this emerging industry. It's rather disappointing since it greatly defeats the purpose of crypto/Blockchain technology. Centralized stablecoins bring back traditional banking into the crypto space. It's like "Banking, reimagined". I'm guessing that governments and central banks might choose to issue their own digital currencies on public blockchains we know and love today, with the ability to manipulate them at will. Since ETH its a smart contract platform, anyone can design a token or coin with centralized features. The core Blockchain will still be decentralized, but the token itself won't. This will bring a clash between the decentralized and centralized realm.

Personally, I'd stay away from centralized stablecoins like USDC and USDT. DAI is the only decentralized stablecoin in the De-Fi space, bringing you complete control over your funds. With DAI, I can feel confident that my funds will always be there without being denied access to them. You can truly become your own bank with DAI, alongside De-Fi dApps that provide lending and borrowing services. While the rest of the people will use USDT because it's the biggest stablecoin on the market, DAI will still have its supporters. I'd wish that we had more decentralized options to choose from, in order to minimize risks as much as possible. It's only a matter of time before developers fork DAI into other decentralized stablecoins for the benefit of all. As time goes by, people will realize that centralized stablecoins can be frozen on the Blockchain. This might lead them towards DAI in the future. As long as DAI maintains its price of $1 USD per coin, there should be nothing to worry about.



That's certainly true, mate. Effectively, ETH has become "Central Bank 2.0" due to the extreme manipulation of centralized assets. Stablecoin issuers now act as traditional banks, determining whenever a person should have access to his/her funds. There's the risk of stablecoin issuers pressing the "freeze" button whenever they want to. It greatly defeats the purpose of crypto/Blockchain technology. The saddest part of this is that most dApps are relying on USDC and USDT to provide De-Fi services. These types of centralized stablecoins should be effectively removed from Compound and other De-Fi protocols. DAI should be the only stablecoin to be used in ETH's De-Fi ecosystem. Otherwise, the De-Fi industry will be doomed. As long as no one cares about centralized stablecoins, they'll continue to grow in the crypto market at an unprecedented rate. Just my opinion

The ability of Tether to just blacklist wallet addresses at will (40 so far), makes it absolutely clear that this cryptocurrency is not decentralized and is not trustless of nature.
Link : https://hive.blog/hive-167922/@themarkymark/tether-freezes-7-9-million-usdt


Source : https://explore.duneanalytics.com/public/dashboards/3zhIaRUCFgmZMKqHG0pguvSvw1aOGL8gxFtZ2ujf

This goes against everything that cryptocurrency is in essence about : having full control over your own funds, through a decentralized blockchain.

To all people who are against stable coins that are centralized please kindly provide a way to control illegal money funding and scam activities in crypto space because I don't see anything wrong in all the freezing, even binance still hunt some stolen funds by blacklisting hackers and scammers address

This has now opened the eyes of everyone to the type of control in centralized stablecoins and as such will make everyone to be very careful of stablecoins and if not for unfavorable markets and/or volatility they can easily be abandoned. Also, this shows why it is not advisable holding stablecoins for a long time because anything can happen and the owner will be left stranded. Furthermore, I think it is now time for decentralized stablecoins to starting taking the lead because taking unnecessary risks with centralized stablecoins is not worth it. Lastly, we have now seen the importance of decentralization because, for a decentralized coin like Bitcoin such things cannot happen.

Eth + stable coins = new central banking

Nothing surprising.

And now it is not even fully regulated, semi legal, they can scam whoever they want.

Thats why centralized projects are dangerous even in crypto space

The first thing to note here is to invest in those coins only where there is no centralization. Bitcoin is completely decentralized which means nobody has the ability to freeze your funds. If still people want to hold stable coins then they will have to know what they are getting into.
Yes, centralized cyptocurrencies can be regulated and the governments do have the ability to freeze your accounts just like how banks does.
Our motives to hold our desired cyrptocurrencies should be very clear and that is how we must decide in which coin to invest in.

As far as I know the the blockchain is decentralized but still ERC 20 tokens can't be considered as completely decentralized.Any stable coins are centralized as we know so it is possible for them to freeze coins even if we store them in our wallet means they can blacklist the address from the chainlink.

Centralized = we don't have complete control over the funds.

They can freeze your money even if you are not doing criminal activities. Why? Simply because they have the power to do so.

This is crazy. Why would you even want to have stablecoins to be frozen? With your reasoning, why do you even use cryptocurrency?

This further proves what I said earlier.

Your money won't get freezed using stable coins like USDC or USDT unless you are from a criminal empire, I don't need to worry about this OP, im into clean and straight path of making money and I like the fact that stablecoins can get freezed

This is not good in my opinion. What if an investor who has a huge fund then suddenly been hold or freeze on an exchange? That is quite frustrating especially he knows he is not doing any kind of illegal activity. Centralized exchange can do locking of accounts, but they should have a valid point to do this.

Stablecoins are the backboned of market and most people uses it for safe haven of their trades. This will make trader doubtful to even use it for safety.

What's funny here is a lot of people don't give a shit anymore whether a stable coin is centralized or not because majority are accustomed to using centralized services from exchanges to wallets and to other services involving cryptocurrencies. One common excuse I read why they still support USDT or USDC is they only use it for trading purposes that's why they aren't worried if it can be frozen.

As crypto goes mainstream, it seems more and more people slowly accepts centralized stable coins. But there's still hope for the few who value decentralization. Out of all the existing stable coins running on the ethereum blockchain, only DAI can't be frozen. mk4 has written a good post about this topic and you can read it here https://bitcointalksearch.org/topic/updated-psa-most-stablecoins-can-be-frozen-even-in-your-own-wallets-5204055
 

I can't comment a lot about this consider any blocked address will always be related to the crime


that's from your link and I guess that has become the main point why this ability has already created by the issuer of stable coin.

I've stumbled on a news article from CoinTelegraph which said that Centre has frozen (blacklisted) USDC stablecoin holdings from an ETH address. There has been a similar situation with the stablecoin "Tether USDT" over the past days. I know that stablecoins hold good promise in bringing the best of both worlds. But freezing someone's assets on-chain, makes stablecoin issuers no different than traditional banks we've been accustomed for a very long time.

For those unaware about the situation, here's a link to the CoinTelegraph article: https://cointelegraph.com/news/centre-freezes-ethereum-address-holding-100k-usdc. It the trend continues, I don't think people will fully embrace stablecoins altogether. Stablecoin issuers might become easily manipulated by governments and central banks in order to freeze accounts at will. So much for decentralization on ERC-20 tokens living on the ETH blockchain.

What are your thoughts?