Ryan
@ryanfmason
Honestly pretty alpha move to cause a regional banking crisis just because you hate a certain industry and then go “damn these guys are lobbying so hard, this seems unfair”
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keccers
@keccers.eth
Sorry for total reply girl on you. What can I say the posts are good The bailout risk seems real to me? I don’t want to subsidize another tech bro mess like SVB? In some way, foolish arguments re: criminality are a distraction
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Ryan
@ryanfmason
Stable coins are backed by very low risk high liquidity assets afaik, seems as high a bailout risk as something like being able to make withdrawals out of a money market account I don’t think the flows will be people in the US going from their checking or savings to stable coins it will be people abroad moving money into US or possibly Euro stablecoins. I don’t really see the risk
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keccers
@keccers.eth
they can say they are backed by whatever they want. WHY should I trust that? There’s a variety of scenarios I can envision here from a depeg to a “bank” run that cause problems with no real assurances Money market accounts are regulated and FDIC insured!!!
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Ryan
@ryanfmason
I believe Circle is subject to legit audits, and last time I heard anything from tether CEO he said they were doing an audit with a big four. I get the believe it when you see it side, but I can see many other assets or companies that are a much bigger risk that we kind of trust are fine, with similar assurances. T bills and bonds aren’t FDIC insured but I’m fine with it
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keccers
@keccers.eth
Enron was audited by the Big 5 at the time of the scandal. You think Circle can’t find an accountant to pay off? It’s just not compelling to me that I should trust these institutions to appropriately manage risk and not leave taxpayers with the bag. I look at how arguably the most trustable company in the space, Coinbase, handled their data breach as confirmation of my intuition here. There‘s no reason to give these companies the benefit of the doubt. I would want something more meaningful than “trust me bro” and falsifiable audits I say this as a regular user and holder of USDC
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Ryan
@ryanfmason
I’m all in favor of more transparent and verifiable proof to persuade people of trustworthiness, but if the choice is: status quo of institutions we can’t fully trust not to leave us holding the bag vs New institutions we can’t fully trust not to leave us holding the bag but with better rails that caters more to even further decentralized systems, then I’ll at least take that, and hope that the available infrastructure will be used to make it more trustable than it is now At least there was no TARP for Terra/Luna
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