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![Thomas pfp](https://imagedelivery.net/BXluQx4ige9GuW0Ia56BHw/5e8ddd60-c492-453f-3708-d6ef258b7300/original)
Sure, but then itâs not just stablecoins in general, itâs specifically any stablecoin thatâs pegged to a fiat currency that is itself stable over time (and not tied to either a highly fluctuating currency, or one of those âalgorithmically peggedâ stable that eventually falls apart â how many lost their shirts in Terra/Luna?). In an era where CBDCs are cropping up, thatâs an important distinction.
Otherwise there are more stable stores of wealth, including literal gold (which is why gold shops are a common sight in countries with uncertain currencies).
I read the parentâs post as a generic statement about stables, but they are only as good as the underlying asset theyâre supposed to peg to, and sometimes even worse than that.
Where I live, for instance, we use the xSGD â a stablecoin pegged to the Singapore dollar, which has a good track record of stability but isnât itself pegged to the USD, so who knows what might happen given the geopolitical risks in the region. 1 reply
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