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3 sats \ 8 replies \ @zuspotirko 1 Jun 2022 \ on: Bank of England to take over collapsed stablecoin cryptocurrencies :-) bitcoin
This is madness wtf
(btw here full article)
Thx. So many questions. Why are they saying regulation is needed? The market has already moved on to more stable stablecoins.
And TUSD was a USD "stablecoin" what's the bank of england got to do with it
Also stablecoins aren't used mostly by British, it's worldwide accessible, why UK Bank makes it liable for it? And how? UK taxpayers bail them out if they lose peg?
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My guess is that they actually don't know what they are talking about.
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BoE could issue their own token and reimburse 1:1 to depegged token holders. Since it's on-chain and transparent it could be done without anyone cheating if BoE paid close attention. What they gain from this is the network effect of the depegged token so to speak, and it doesent have to cost BoE much since they can create in theory as many tokens as they want to reimburse the failed stablecoin holders 1:1. The BoE token must be perceived to have higher value now or in the future than the depegged stablecoin tho, maybe thats the hard part. Just thinking out loud sry.
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Yeah but I don't understand what legal framework would allow this. My understanding is that it is like buying a doughnut - if one loses the doughnut it's not the central banks job to replace the doughnut.
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This is hypothetical but what if the central bank also made donuts and in fact could make them out of thin air and saw an opportunity for new customers by offering 1 free to donut to anyone who could prove they just lost one from someone else.
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I had a hard time understanding. Thought I was taken to The Onion, then I realised it's 'real' and many questions flooded my brain.
Your comment helped.
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UST is the one that collapsed. TUSD is a stable that has real time attested by third party audit firm, fully cash backed.
I am wondering if they are going to allow mass flow of stablecoins of all currencies or they are skipping CBDC in favor of a GBP stablecoin issued by retail institutions.
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it's just news from clown world what do you expect :-)
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