[ExI] bitcoin again

[Stathis Papaioannou]

On Sun, 27 Nov 2022 at 10:28, Dylan Distasio via extropy-chat <
extropy-chat at lists.extropy.org> wrote:

> Since we're getting off to a slight side discussion, I would hope that
> this is the outcome.   To his credit, the CEO of Kraken has said for years
> now to hold your own keys, despite running a CEX.
>
> I remain very concerned about the fallout of FTX damaging crypto policy in
> the US however.   Additionally, while I initially brushed off second+ order
> effects from the FTX fiasco on other more well run CEXs, I apparently
> underestimated it as Kraken has paused to/from fiat transactions for one EU
> bank that was collateral damage.   The issue is fully on the bank side, but
> it was still wrought by SBF's collapse.
>
> The other elephant in the room, for me, remains the centralized nature of
> stablecoins.   USDC is very problematic and has shown a complete
> willingness to implement blacklisting when a government agency tells them
> to.   USDT also blacklists.
>
> It will be interesting to see what happens with Maker, but I have major
> concerns with the "endgame proposal" that passed.   I am fully aligned
> with Christensen’s concerns over black listing/centralization, but don't
> think a free floating "stable" coin is the answer.   The world traffics in
> fiat; there needs to be a reliable way in cryptoland to protect principal
> and know that you can get 1:1 fiat.
>
> I had hoped UST might be the answer, but I was fooled very badly there.
>  Unfortunately, it is very likely that any entity that holds enough fiat
> reserves to maintain a peg is going to be heavily regulated, making
> decentralization an extremely difficult problem to solve in stables.
>

Eventually central banks will issue their own digital currencies, and then
there will be less utility for private stablecoins.

-- 
Stathis Papaioannou
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