Fidelity Prepares To Unveil Its Own Stablecoin (binance.com) 32
According to the Financial Times, Fidelity Investments is in advanced stages of developing its own stablecoin. Binance reports: The Boston-based financial services giant plans for the token to serve as a form of digital cash, according to the report, which cites two people close to the matter. The token would form part of company's strategy to enter the tokenized government bonds market. Stablecoins are a cryptocurrency whose value is pegged to a real-world asset such as the U.S. dollar or gold. They provide a convenient way for crypto traders to preserve their fiat value without having to cash out of the market.
The news emerges just days after Fidelity filed paperwork to register a blockchain-based version of its U.S. dollar money market fund. The company seeks to register an "OnChain" share class of its Treasury Digital Fund (FYHXX), which holds cash and U.S. Treasury securities and is available only to Fidelity's hedge fund and institutional clients. A Fidelity stablecoin could fill the role of cash in this fund. The report comes a day after World Liberty Financial, a crypto venture backed by Donald Trump and his family, launched a U.S. dollar-pegged stablecoin called USD1.
The news emerges just days after Fidelity filed paperwork to register a blockchain-based version of its U.S. dollar money market fund. The company seeks to register an "OnChain" share class of its Treasury Digital Fund (FYHXX), which holds cash and U.S. Treasury securities and is available only to Fidelity's hedge fund and institutional clients. A Fidelity stablecoin could fill the role of cash in this fund. The report comes a day after World Liberty Financial, a crypto venture backed by Donald Trump and his family, launched a U.S. dollar-pegged stablecoin called USD1.
I'll call mine the TulipCoin (Score:2)
Can someone explain to me like I'm a small child what the point is of having a digital currency that's free of the shackles and conceits of government issued fiat currency...that's also pegged to government issued fiat currency and backed by cash reserves of said currency?
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You're mixing up the crazies who want to keep money under their mattress but don't want to get dinged by inflation and the not so crazies that want to take a nice percentage of everybody's transactions.
The latter like stable coins because they represent a real currency so they might actually get used as one, and if yours is popular you get to be VISA taking a cut of every transaction and also people give you lots of money to do what you want with and you don't even have to pay them interest. It's a great ra
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If it can be done more cheaply then eventually someone will consider swipe fees to be a racket, yes.
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If you read a little more carefully, the "great racket" I was referring to is stablecoins.
VISA performs transactions and offers credit. You pay for both. Stablecoins perform transactions, fine, but they don't offer credit. You give them your money first. It's more like a bank account and debit transactions. The racket part is that they don't pay you interest on your deposit, don't offer any kind of guarantee if it's stolen or they lose it, and typically they get greedy and either issue more coins than they
So there's only two ways this ends up (Score:5, Insightful)
The second is unregulated banking with absolutely no safety protocols.
Either way it'll create the kind of disaster that makes the Great depression look like the
This is something that needs to be stopped right the fuck now but the zero chance of that happening. It's so freaking frustrating to watch everything collapse thing and being basically unable to do anything about it.
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The first is an anarchist pipe dream. It's super dangerous but fortunately it's also super impractical.
Money laundering is firmly in the second camp. Money launderers love unregulated banking, particularly the kind that doesn't care about borders. Still dangerous if it gets big enough, but not as dangerous as overthrowing national currencies.
Why Not (Score:2)
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Finally, an answer (Score:2)
In other words, stable coins function as "cash" (i.e.: money market funds) for crypto investors. A fund which is both very liquid and very safe, where you can store your money
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Maybe, but, more importantly, stablecoins are the only part of the crypto world that isn't a giant tulipmania bubble. Imagine you develop a payment card with an ARM chip in it, or a phone app or whatever, that lets you transfer bitcoins to a merchant at a cash register. Cool tech, but useless, because what merchant in their right mind wants to take payment in fake money?
Now imagine the same thing, but it's a stablecoin backed by $1 deposited in an escrow fund for every $1 token issued, and imagine the tra
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The problem is that stablecoins in practice go like this:
CryptoBro: Hi Tether, I have $50,000
Tether: Excellent, here's $1,000,000 Tethers!
CryptoBro: [Buys $1,000,000 worth of bitcoin] Look how rich I am!
Is it convenient? (Score:2)
(for people who can't read between the lines, that was sarcasm. No need to call the cops)
The point is, crypto serves two purposes.
1) hiding transactions
2) fostering gambling addictions
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You forgot "buy politicians".
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Fuck (Score:2)
If you don't understand why that's a bad thing I don't even know where to begin. The number of things you're wrong about it would take more time than I have left on this earth to disabuse you of.
Re: Fuck (Score:2)
Why not print money too for a strong basic income?
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The President of the United fucking States did a rug-pull cryptocoin scam and no one batted an eye. Banks don't want to miss out on that apparently now-legal pie. What else do you expect?
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Money laundering was already integrated into our financial system. Banks like HSBC have been involved in such laundering before. Cash is still the preferred medium for money laundering.
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Half the US voted for a convicted felon who explicitly said, out loud, during their campaign, that they'd end democracy. I don't know what the word "criminal" is intended to mean any more.
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Anything inconvenient for the powers be is "criminal" now. They kept harping on free speech before they came into power, but now want to hard shut down of anybody that is critical of them. We're slowly turning into Russia now. They have laws on the books that send you to prison for 13 years if you criticize the govt.
Re: Fuck (Score:1)
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First it was a bitcoin etf (Score:2)
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It suits some people. But not me. I’ll take my money to a different venue.
Worry about money in Fidelity (Score:2)
Hi worried should I be about my regular investments, 401K and money that's in Fidelity. If this stable coin tanks, will it take my account down with it? I'm thinking about companies such as Barings or Bear Stearns.