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hd95489 | 2 years ago

No, they are more prone to runs because there is no central bank to bail anyone out

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jejeyyy77|2 years ago

Uhm, hate to break it to you, but you can only have a run on the bank as a result of fractional banking - which is systemic in the fiat banking system due to regulations only requiring they hold 10% of customers' deposits.

You literally cannot have a bank run on USDC or BTC because they do not do fractional banking (i.e loan out the money you deposited).

quickthrower2|2 years ago

With stable coins you can have insolvency which is worse than a bank run probably (because no government insurance). Stable coins are the worse to keep cash - higher risk than a bank account but no interest. The only logical uses for them is online gambling and money laundering.

You don’t own a USDC. Instead some random offshore company owes you a dollar.

roflyear|2 years ago

You can't give out loans really without fractional banking either. I mean you can. But not really.

opportune|2 years ago

Yes you can with stable coins, the money held to back USDC was held in regular banks like SVB, some of which would have gone poof if not for the Fed has not guaranteed all SVB deposits. That’s why USDC depegged before the deposit guarantee was announced