Just as an FYI, USDC & stablecoins (and CBDC's) are centralised and the same abuse of power is possible here too. Obviously being debanked in fiat and crypto at the same time is extremely unlikely...but possible if someone is REALLY out to get you.
> Just as an FYI, USDC & stablecoins (and CBDC's) are centralised and the same abuse of power is possible here too.
It's the unfortunate consequence of one gigantic unaddressable problem:
USD can only be minted efficiently by the Fed.
- Collateralized stablecoins exist, but they're inefficient in that they must be overcollateralized to cushion against falling asset values.
- USDC & their kind are efficient, but at the cost of being centralization vectors as a result of current US legislation
- An efficient synthetic stablecoin can exist, but it requires deep liquidity in the marketplace to keep the peg stable. (Probably > $100B at the ready to absorb panic sells) Synthetic stocks are the closest analogy available for this, but applied upon a currency. The chicken-and-egg means that bootstrapping something like this is not feasible at small scales: It needs to be big from the get go.
