Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: ValueFirst on June 10, 2022, 10:01:44 PM
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Although Stablecoins can be collateralized by fiat currency 100%, digital cash is always an exchange of 1 fiat currency for 1digital equivalent more like a CBDC, in this regard every Digital cash owner is identified and associated with every particular digital cash, in other words, they are always account-based identity issued they are most suitable for bridging fiat to Crypto/DeFi but unlike Stablecoins they can never be unpegged, it simply does not matter because you will always be able to exchange 1 Digital Cash for 1 Fait currency it represents like
1USD: 1DigitalDollar
1Euro: 1 DigitalEuro etc.
Do you know anyone who does this other than fluid Digital Cash https://fluid.ch/our-products/digital-cash/ (https://fluid.ch/our-products/digital-cash/)?
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Bit of a thin line between the two, IMO. However, I get your point
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However, if you look at it from the perspective of regulation, Digital cash is likely to meet regulatory requirements more easily than Stablecoins. Because
1. It is represented 1:1 by 100% fiat currency
2. The currency is held in Treasury that is verifiable every time
3. The amount in circulation is never allowed to be more than the amount of fiat held in the treasury
4. This is further insured to ensure all foreseeable risk is prevented
5. And so peg or unpegged you will always have 1 fiat currency for your 1 Digital cash
Digital Cash is Private sector CBDC kind of.
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Currently there are not digital USD or EUR cash in the world market and probably digital cash will not come in next 10 or more years. So stable crypto coin market, like Tether USDT will chances to go up.
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Stablecoins and digital cash are both types of cryptocurrencies, but they have some key differences.
Stablecoins are cryptocurrencies that are designed to maintain a stable value relative to another asset, such as a fiat currency like the US dollar or a commodity like gold. They achieve this stability through various mechanisms, such as backing the stablecoin with reserves of the asset it is pegged to or using algorithms to control its supply.
The main purpose of stablecoins is to provide a stable unit of account and a medium of exchange, allowing users to transact in a cryptocurrency without being exposed to the volatility associated with other cryptocurrencies like Bitcoin or Ethereum. Stablecoins are also used as a hedge against volatility in traditional financial markets or as a means of transferring value across borders.
Digital cash, on the other hand, is a type of cryptocurrency that is designed to function like physical cash. It is meant to be used as a means of payment, allowing users to make peer-to-peer transactions without the need for a financial intermediary. Digital cash is often designed to be private and anonymous, allowing users to transact without revealing their identities or personal information.
The key difference between stablecoins and digital cash is their intended use case. Stablecoins are designed to be a stable and reliable store of value and a means of exchange, while digital cash is designed to be a private and anonymous means of payment. However, it is worth noting that there may be overlap between the two categories, as some stablecoins may incorporate privacy features and some digital cash may be designed to maintain a stable value.
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1. It is represented 1:1 by 100% fiat currency
Digital Cash is Private sector CBDC kind of.
Difference between Gold-backed Stablecoins and Digital Cash
Digital cash is a digital version of fiat money.
The value of Fiat money is backed by nothing other than the confidence people have in their Government (and in the Central Bank, the issuer of fiat money).
Digital Cash depreciates as the same rate of Fiat money: e.g. Digital $ depreciates at the same rate of $.
The value of Gold-Backed Stablecoins is backed by Gold.
The value of Gold-Backed Stablecoins depends on the confidence people have in the value of Gold.
5000 years of history.
If digital cash (several currencies) and gold-backed stable coins had existed in the last 20 years, this would have been their relation
(https://assets.goldavenue.com/uploads/redactor2_assets/images/241/Visuel_Email_2-03.png)
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1. It is represented 1:1 by 100% fiat currency
Digital Cash is Private sector CBDC kind of.
Difference between Gold-backed Stablecoins and Digital Cash
Digital cash is a digital version of fiat money.
The value of Fiat money is backed by nothing other than the confidence people have in their Government (and in the Central Bank, the issuer of fiat money).
Digital Cash depreciates as the same rate of Fiat money: e.g. Digital $ depreciates at the same rate of $.
The value of Gold-Backed Stablecoins is backed by Gold.
The value of Gold-Backed Stablecoins depends on the confidence people have in the value of Gold.
5000 years of history.
If digital cash (several currencies) and gold-backed stable coins had existed in the last 20 years, this would have been their relation
(https://assets.goldavenue.com/uploads/redactor2_assets/images/241/Visuel_Email_2-03.png)
agree. at least right now, I think more people have more confidence in gold rather than cryptos. We don't know when cryptos can replace the value of gold. As long as gold existing, I think it will keep maintaining its function and power since it has proved over time.
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If digital cash (several currencies) and gold-backed stable coins had existed in the last 20 years, this would have been their relation
(https://assets.goldavenue.com/uploads/redactor2_assets/images/241/Visuel_Email_2-03.png)
agree. at least right now, I think more people have more confidence in gold rather than cryptos. We don't know when cryptos can replace the value of gold. As long as gold existing, I think it will keep maintaining its function and power since it has proved over time.
Hi Antony,
actually I wasn't comparing gold vs. cryptos... but rather gold-backed cryptos vs. cash-backed cryptos :D
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Interesting title of the article: "Tether will neither confirm nor deny USDT's fall on Tron."
Source link: https://cointelegraph.com/news/tether-wont-confirm-deny-plans-drop-usdt-support-tron
If anyone is thinking about the security of their funds, etc. Just read what they write: "Tether retains the ability to freeze transactions at each directly supported transport layer to meet its compliance obligations."
Today you see a virtual 1,000$ and tomorrow it's blocked = no appeals. Why did this happen? You don't have to know. Even in stablecoins - there has to be diversification.
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Although Stablecoins can be collateralized by fiat currency 100%, digital cash is always an exchange of 1 fiat currency for 1digital equivalent more like a CBDC, in this regard every Digital cash owner is identified and associated with every particular digital cash, in other words, they are always account-based identity issued they are most suitable for bridging fiat to Crypto/DeFi but unlike Stablecoins they can never be unpegged, it simply does not matter because you will always be able to exchange 1 Digital Cash for 1 Fait currency it represents like
1USD: 1DigitalDollar
1Euro: 1 DigitalEuro etc.
Do you know anyone who does this other than fluid Digital Cash https://fluid.ch/our-products/digital-cash/ (https://fluid.ch/our-products/digital-cash/)?
The point about stable coins is that they are used in decentralized blockchains, such as ethereum.
This allow users to SWAP stablecoins to other cryptocurrencies (or even bridge them to other chains). This is amazing and allows different trading and staking capabilities. I will also add that stable coins can be way more private than CDBC, as you don't need to do any KYC to use them
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If anyone is thinking about the security of their funds, etc. Just read what they write: "Tether retains the ability to freeze transactions at each directly supported transport layer to meet its compliance obligations."
Yeah, stablecoins can be frozen in any wallet you store it in, and the sad thing is that many people do not know this, they know it can be frozen in centralized exchanges, but they don't know it can be frozen in any wallet at all. If you want to use stablecoins, use them for the short term and do not store your money in stable coins so you don't lose it. Take note that many stable coins are also printed out of thin air and are not backed 1:1 by anything.
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Fluid digital cash? I'm not sure what that means. It's the first time I have heard of this. So it's a product of fluid.ch in your post? I don't think there would be a use case if you are just going to create a new one or something. Maybe better to have another offer to possible users.
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Yeah, stablecoins can be frozen in any wallet you store it in, and the sad thing is that many people do not know this, they know it can be frozen in centralized exchanges, but they don't know it can be frozen in any wallet at all. If you want to use stablecoins, use them for the short term and do not store your money in stable coins so you don't lose it. Take note that many stable coins are also printed out of thin air and are not backed 1:1 by anything.
That's right. That's why it pays to be extremely cautious. Even in stablecoins (I would advise) to stick to diversification. Who knows, today it's there today = gone tomorrow. Or someone gets locked up/hacked, etc. There can be a lot of negative aspects. Their (endless) printing of millions of dollars, (just for fun) I'm not even talking about to be honest. They do whatever they want.
P.S. If tomorrow it happened that your funds were blocked. Where would you go? What will you do in this situation? Except for the site + minimal technical support they have nothing. I would already think about it, to be honest. Just a thought in my ear, so to speak. And it's up to everyone to decide what to do and how to do it. ???
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That's right. That's why it pays to be extremely cautious. Even in stablecoins (I would advise) to stick to diversification.
When you say diversifaction, do you mean storing your money in more than one stablecoins, i do not agree with that, storing your money in multiple stablecoins can only give you a false sense of security, i actually think it opens up the person to more ways they can lose their funds. I recommend that people only use stablecoins for the short term, as long as they are not day traders.