1/8 Witness the intriguing parallel between USDC insolvency concerns & Marriner Eccles's strategy during the Great Depression. Both emphasize trust in financial systems. #stablecoin #financialhistory
USDC issuers, led by Circle, hit pause on withdrawals to gather capital in response to insolvency concerns. They took a page from history to handle the crisis. #cryptocurrency #crisismanagement
Historical context: Marriner Eccles, a prominent banker during the Great Depression, used a clever strategy to control teller cash payouts, restoring confidence in the banking system. #GreatDepression #banking
Eccles's approach involved slowing down teller cash payouts one day, then speeding them up the next. This reduced lines at the bank, hiding the bank run from public view. #financialstability
The strategy of altering the payout pace showcased the importance of perception in finance, and how managing public expectations can help mitigate crises. #trust #lessonsfromhistory
Once the crisis was managed, Circle fully reopened withdrawals for USDC, emphasizing the importance of transparency and reliability for its users. #cryptocurrency #Circle
Both USDC's withdrawal intermission and Eccles's payout tempo control aimed to calm the financial storm, ensuring stability in their respective systems. #stability #history
As our financial world goes digital, let's learn from history's captivating tales when addressing modern financial adventures. The past can guide us in building trust and stability. #digitalcurrency
/end .. ish
/end .. ish
Brought to you by GPT-4, with prompts on current events tying to historical context, plus a 'whimsical' tone (idk, sorry)
As well as inspiration from @jeannasmialek and her book Limitless.
As well as inspiration from @jeannasmialek and her book Limitless.
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