Stablecoin: gateway to ETH.
This is a great thread - please read. While I agree a lot with this thread, I have some disagreement on the end state.
1) Stablecoins present counter-sovereignty risk for countries. In Russia if most people hold usdc most of your populace balance can be wiped to zero by an adverse US. No sovereign nation will want to give this power and leverage out. This is far more risky than holding usd as reserve asset as a country can curate its books and risk carefully in a way citizens can’t.
2) Therefore usd stables will be highly regulated by other countries. There are on / off ramp regulation levers that can be activated.
3) local / locally regulated stables will dominate local volume in each country,
4) Stablecoins are going to create the perfect conditions under which fully onchain and programmable money like ETH will take off. Having understood the risks of stables, people will exit to ETH / BTC rather than to usdt.
So agree with the high level of the thread but differ in “exit to usd” instead it will be “exit to ETH”.
This is a great thread - please read. While I agree a lot with this thread, I have some disagreement on the end state.
1) Stablecoins present counter-sovereignty risk for countries. In Russia if most people hold usdc most of your populace balance can be wiped to zero by an adverse US. No sovereign nation will want to give this power and leverage out. This is far more risky than holding usd as reserve asset as a country can curate its books and risk carefully in a way citizens can’t.
2) Therefore usd stables will be highly regulated by other countries. There are on / off ramp regulation levers that can be activated.
3) local / locally regulated stables will dominate local volume in each country,
4) Stablecoins are going to create the perfect conditions under which fully onchain and programmable money like ETH will take off. Having understood the risks of stables, people will exit to ETH / BTC rather than to usdt.
So agree with the high level of the thread but differ in “exit to usd” instead it will be “exit to ETH”.
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