[7e]

But what advantages do stablecoins have?

[toomim]

Faster and cheaper transactions that don't get locked up by the whims of a bureaucracy. They continue to operate on non-business days.

[Aurornis]

That’s also a downside: When your funds can be transferred away by anyone who happens to acquire the key without triggering any fraud prevention or additional verification checks, losing your entire bank account at 4AM Sunday morning becomes much easier.

[Ekaros]

Is there some magic in redeeming them? And by redeeming I mean going to issuer and getting the face value in seconds?

[irishcoffee]

At the end of the day, for better or worse, the US dollar is backed by the US military. Virtual coins are backed by the greater fool.

What a strange toss-up.

[luke5441]

Seigniorage accrues to private entities instead of the state, enriching the owners of those private entities rather than everyone in the state that issues the currency.

[nivertech]

> Why do stablecoins exist at all?

For states:

They quietly inflate the money supply by forking fiat, achieving monetary base expansion without the political cost of explicit money creation

For issuers:

They convert user deposits into a private mint: risk-free interest on collateralized reserves, with none of the upside shared with holders

For users:

For everyone but the unbanked & criminals, stablecoins are strictly inferior money surrogate: no yield, no guarantees, and no recourse

[baxtr]

I don’t think that matters.

It’s a sign of commitment to something they’ve invested in as OPs says.