[ExI] bitcoin again

[Dylan Distasio]

When central banks issue their own digital currencies, unless there is an
alternative in decentralized stable coins, it's game over on the dream of
what could have been.   CBDCs represent the death knell of the last
remaining financial freedoms we have if there is no viable alternative in
the cryptosphere.   I have to disagree, there will be more utility for
private stablecoins if CBDCs are the alternative, at least for those of us
who see the possibility of what crypto COULD be.

On Sat, Nov 26, 2022 at 7:20 PM Stathis Papaioannou via extropy-chat <
extropy-chat at lists.extropy.org> wrote:

>
>
> 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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