Most goods today are denominated in fiat, so stablecoins are a better fit than gold.
And at this stage, stablecoins are great for easy money movement (rather than holding in crypto). I actually think most people won't even know that crypto rails have been used to move their money, with stablecoins like tcp/ip for money movement.
I mean, asking for $500 in gold every paycheck would be kinda cool, or getting gold coinage each pay cycle on a rolling basis, as many coins as your repeated $500 contributions buy.
It'd be friction against spending, a little bit of investing, in the case of gold, but friction against spending with crypto only makes sense if you don't lose a lot on moving it into a real bank account.
Why? Because the US stable coins are an abstraction on top of US treasuries. It's effectively trading in the US debt market, not trading in crypto-hype.
The Fed is interested in converting the debt to another medium, for obvious reasons. Stablecoin looks to be the leader, since a number of the new administration have talked about it in the last decade (re: Scott Besset stablecoin speech).
I can understand why some companies want their runway in a currency that may go up during a transition (a more favorable exchange rate). There's little lossage in the exchange of USDT/USDC in the short term. Seems like a hedge strategy.
cheonn638|26 days ago
Crypto more hype-able
mrguyorama|26 days ago
nemild|25 days ago
Most goods today are denominated in fiat, so stablecoins are a better fit than gold.
And at this stage, stablecoins are great for easy money movement (rather than holding in crypto). I actually think most people won't even know that crypto rails have been used to move their money, with stablecoins like tcp/ip for money movement.
iwontberude|26 days ago
observationist|26 days ago
It'd be friction against spending, a little bit of investing, in the case of gold, but friction against spending with crypto only makes sense if you don't lose a lot on moving it into a real bank account.
ceejayoz|26 days ago
mikkupikku|26 days ago
Supermancho|26 days ago
The Fed is interested in converting the debt to another medium, for obvious reasons. Stablecoin looks to be the leader, since a number of the new administration have talked about it in the last decade (re: Scott Besset stablecoin speech).
I can understand why some companies want their runway in a currency that may go up during a transition (a more favorable exchange rate). There's little lossage in the exchange of USDT/USDC in the short term. Seems like a hedge strategy.
daveguy|26 days ago
Nope. Not until these companies allow an independent external audit. I don't take "trust me" from a crypto bro as proof of backing funds.
Oh, and the current administration is clearly corrupt, so this administration wanting to convert the US to bozo bucks isn't one for the plus column.