Can someone ELI5 why Jack is wrong? I love stablecoins, but am probably more aligned with Jack than its boosters right now. Feels like the excitement around stables today smells a lot like emperor has no clothes

Investors keep asking me about stablecoin, and how that can reduce FX fees; if you send money from USD to EUR, and the receiving end still requires to receive EUR in their bank, I can’t see any ways stablecoin can reduce fees - off ramping from stablecoin to recipient currency

Jack Zhang

Can someone ELI5 why Jack is wrong? I love stablecoins, but am probably more aligned with Jack than its boosters right now. Feels like the excitement around stables today smells a lot like emperor has no clothes

https://x.com/awxjack/status/1931239220204486879

I don't think stables are about reducing FX. 

It's about making moving *US dollars* instant and programmable.

Is the USD<>EUR spread the same? The in and out can be free but the the spread is entirely based on liquidity.

it's both

https://farcaster.xyz/jessepollak/0xc8d0fe3f

Just a function of liquidity. If sufficient depth of EURC / USDC liquidity, should be the same

Makes sense! Seems like there’s no inherent advantage to stables forex. Forex more of a market than tech problem

Working on payments with Coinbase Wallet. Cast me if u have any feedback! Prev founder of /utopia

How do you define substantial? There’s over 100 non USD/EURO pegged currencies out there.

Interesting. Are there even substantial non-USD non-Euro stable fx markets?

They do reduce FX for long tail currencies (even with on-ramp/offramp costs).