@yitong on Farcaster: "Can someone ELI5 why Jack is w..."

7mo

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

Jack Zhang

@awxjack

7mo

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

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dwr

7mo

I don't think stables are about reducing FX. It's about making moving *US dollars* instant and programmable.

yitong

7mo

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

dwr

7mo

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

matthewb

7mo

stablecoins are a pretty obvious paradigm shift if you’ve ever sent a wire less about fx fees, more about remittances and instant worldwide settlement with near-zero fees

yitong

7mo

I have sent wires and they’re pretty good! Stables are better in some narrow cases, but I wouldn’t under estimate wires either

nonlinear.eth

7mo

i think routing around the correspondent banking networks is significantly cheaper and has much faster settlement times also onchain fx is true 24/7 (unlike offchain)

yitong

7mo

Where is onchain fx tho? Outside of USDC/EUROC? I don’t know of any onchain fx markets?

nonlinear.eth

7mo

sfaik there's not much onchain fx. no dedicated ux, lack of options for trading with leverage, and absence of asset breadth and depth are the main reasons why imo

jesse.base.eth

7mo

anyone serious today can get 10x cheaper FX on @base.base.eth using free EURC and USDC on/offramps and aerodrome for fx

flynn.eth

7mo

programmability of tokens (including stablecoins) is still underrated because we haven't found the killer use cases

arsent

7mo

FX fees = (1) spread from liquidity/volatility, (2) broker fees, (3) rollover fees. Stables eliminate 2 & 3, and reduce 1 over time by boosting global liquidity + speed. If you’re a global biz transacting in EUR & USD, cutting 1% in fees w/ stables is a no-brainer.

0x99fran

7mo

Very briefly. Hes stuck in % land of the traditional finance. His argument is you cant beat the 0.01% fee of the current system. But crypto does beat it. Crypto rails dont charge a percent. They charge be a flat fee regardless of size. And that fee is approaching fractions of a cent. 0.01% of 10,000 is still $1. 10-100x more expensive than moving the same amount on crypto rails. That percentage vs flat fee difference adds up and becomes ridiculous savings the more capital runs on crypto rails.

geoppls

7mo

You want to transfer $1000 to someone in the Philippines. You and the other Party both have stable coin wallets. You send your 1000 to the US crypto Bank. The crypto bank holds millions in this stable coin. The US crypto bank sends $1000 and stable coins to that person’s wallet in the Philippines.

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