Significant advancement? Without legal acknowledgement from government, i fail to understand what they did could be more significant than adding any arbitrary data on cryptocurrency blockchain.
News headlines have become unhelpful. Enter the word “Bitcoin L2 Solutions” in a sentence and you will have a hot headline.You have made valid points, the development of treasury bills on L2 solutions will make things more difficult but I am guessing that's not the main point of this development plan. To tokenize the bills, they need real bills to back that up and if they will integrate it on L2 Solutions the adoption will increase although they can do whatever with the bills in physical form and they will be selling people a currency pegged to treasury bills that might be are used as collateral somewhere else.
The integration between Bitcoin and the traditional economy is still far away, and all solutions to this integration are centralized, such as an ETF, while L2 is a solution to the problem of scalability in Bitcoin. You took a solution to a problem for Bitcoin and implemented an application on it that is far from its basic use, and thus you will create another problem, which is centralization and high fees.
Who would want to bridge the ugly traditional finance with Bitcoin?
Normal people don't even use such solutions, so this is only really of interest to financial institutions.
Significant advancement? Without legal acknowledgement from government, i fail to understand what they did could be more significant than adding any arbitrary data on cryptocurrency blockchain.
Significant advancement? Without legal acknowledgement from government, i fail to understand what they did could be more significant than adding any arbitrary data on cryptocurrency blockchain.You can tokenize everything on the blockchain, if you are the owner of an asset you can do it at any time as there are dozens of platforms that offer this service, the US government doesn't care that tether holds US bonds, they won't care about this either, the problem will come up when the token is no longer backed by anything.
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That makes sense. Although for potential buyer, they would expect this bond have legal guarantee and insurance as well.
the problem will come up when the token is no longer backed by anything.
This is the worst part to be honest. I guess I have read a news article where I read that Binance backed their BUSD with USDC or something and it was two or three years ago, after the auditors audited it, they moved a large portion of the funds to somewhere else and it never came back to wallet again. But fortunately, BUSD is not available on the market anymore as Binance had to delist it and they launched their new Stable coin FDUSD. I don't know if they will repeat the same thing with their new Token or not.This is not how I remember, last year around February, Paxos the company minting BUSD for Binance turned out to be not registered or regulated by the SEC to mint BUSD and when the SEC started their movement of regulating crypto exchanges, and other platforms they give Paxos time to stop the minting of BUSD till 21 February and till October to December of 2023 many of the exchanges delist it because of issue regarding to liquidity because the supply was stopped and there was not enough BUSD to fulfill the need to eventually within a year BUSD vanished from the market.
the problem will come up when the token is no longer backed by anything.
This is the worst part to be honest. I guess I have read a news article where I read that Binance backed their BUSD with USDC or something and it was two or three years ago, after the auditors audited it, they moved a large portion of the funds to somewhere else and it never came back to wallet again.
That's why nobody is touching this again, because it's just as shady as the previous deal.I hope we learn from what happened with Luna that these tokens are much weaker than we imagine.
And when these guys get into crypto by means of stuff like ETF, CDBC, etcgenerally i am in favor of stuff like etf or cdbc because i think it allows the general public to be more familiar with crypto even if it isn’t directly crypto yet i think about it more of as training grounds however if it starts reeling away from crypto and loses completely the fundamentals of crypto then it becomes pointless
then it gives the governments ideas, like, "hey, since we hlready have all the benefits of crypto, why don't we ban these decentralized currencies?"they never want decentralized currencies to be of use as they have no access nor control over it so even though stuff like etf and cdbc can help in price i still recommend people to just buy/hold straight up crypto instead