What difference does pegging crypto to the SDR make?

MoreStamps.Global

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Activity: 98

Merit: 0

Stobox: Securities Tokenization

Quote from: Tushar Ramani on January 04, 2021, 12:15:53 AM

Well, I have looked into it and I found it interesting as well. Projects like Benchmark are a little bit difficult to understand from an investment point of view. An ordinary investor will certainly face difficulties in understanding the concept. So, what I can suggest to the team is to create a motion graphic explainer video and explain with a real example.

Coming to the point, IMF seems quite old and well-established. I actually like the concept of SDR. The main reason behind adoring DSR will be backed with the world's top currencies which will absolutely vanish the volatility. Yes, stable coins indeed do that as well but how are they backed? For example, if we take USDT from a pegging perspective, investors will have to think about the following points:

20B circulation with nothing backed
No proof of funds either
Banking partner on the Bahamas
Lawsuits are pending
No physical operation location
Without any regulation
Prints n x USDT like feds

Check this thread entirely: https://bitcointalksearch.org/topic/--5301025

So, similar to XRP, if SEC starts investigating Tether, the situation to projects pegged to USDT will face high intensive price volatility. So, I think pegging to SDR concept makes difference in terms of the long-term value of any project.

Yeah, that is true. USDT can become a nightmare if touched by SEC. So, overall what do you think of SDR being pegged to DeFi?

Tushar Ramani

member

Activity: 400

Merit: 15

Crypto Ghost Since 2017

Well, I have looked into it and I found it interesting as well. Projects like Benchmark are a little bit difficult to understand from an investment point of view. An ordinary investor will certainly face difficulties in understanding the concept. So, what I can suggest to the team is to create a motion graphic explainer video and explain with a real example.

Coming to the point, IMF seems quite old and well-established. I actually like the concept of SDR. The main reason behind adoring DSR will be backed with the world's top currencies which will absolutely vanish the volatility. Yes, stable coins indeed do that as well but how are they backed? For example, if we take USDT from a pegging perspective, investors will have to think about the following points:

20B circulation with nothing backed
No proof of funds either
Banking partner on the Bahamas
Lawsuits are pending
No physical operation location
Without any regulation
Prints n x USDT like feds

Check this thread entirely: https://bitcointalksearch.org/topic/--5301025

So, similar to XRP, if SEC starts investigating Tether, the situation to projects pegged to USDT will face high intensive price volatility. So, I think pegging to SDR concept makes difference in terms of the long-term value of any project.

MoreStamps.Global

copper member

Activity: 98

Merit: 0

Stobox: Securities Tokenization

Hey fellas!

So, I was researching some DeFi and introduced the term SDR through one project called Benchmark Protocol. They are pegged to the special drawing rights - SDR instead of the USD or other currencies.

So, have you heard of SDR before? Well, According to IMF, "The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries' official reserves. So far SDR 204.2 billion (equivalent to about US$281 billion) have been allocated to members, including SDR 182.6 billion allocated in 2009 in the wake of the global financial crisis. The value of the SDR is based on a basket of five currencies—the U.S. dollar, the Euro, the Chinese renminbi, the Japanese yen, and the British pound sterling."

So, what do guy think of difference we (crypto) can make when pegged to SDR?

Topic: What difference does pegging crypto to the SDR make? (Read 326 times)