Zach on Warpcast

Zach pfp

Let’s assume that stablecoin usage grows massively. Everyone everywhere has easy access. People in countries where the currency is less trusted will move lots of money to stables. What happens when these less trusted countries lose control over their local currency?

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Jesse Walden pfp

their govts will ban/limit stable adoption — but citizens, still able to access crypto non-custodially, will continue to access a global grey market in DeFi

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justin.ahn.eth pfp

wouldn't be much different than what already happens in less trusted countries, no? but instead of people holding USD physically in cash, they'd be hoarding digitally, is what i think would change?

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woj pfp

logical step would be to ban stablecoins once usage grows to something dramatic (eg 30%+ in population savings are in US dollars vs locall currency) most likely scenario is that citizens would be limited in how much one can buy (eg argentina with dollars today) or forced to conduct the business in local currecy only (like in turkey)

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Tayyab - d/acc pfp

Think about this in the context of Pakistan a lot. They'd most likely shut broader crypto down and try to nationalize it somehow with local currency stable, PKRC. They are likely already getting ahead of this.

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Garrett pfp

chaos and financial warfare

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JAKE pfp

https://warpcast.com/jake/0xa4b9bb71

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Koolkheart pfp

@koolkheart.eth

Imagine getting rugged by your own central bank and airdropped USDC in the same month

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Monteluna pfp

This is a good question but the answer is most countries haven't had a functioning fiat currency ever. Many fund what little projects they can on external financing via IMF or China, and that funding only goes to infrastructure and real estate projects. Less trusted countries don't have rule of law for anyone to use their currencies, hence why they're less trusted to begin with. Their citizens consistently dump the local currencies and the bond market never trusts loans in that currency for a reason.

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Borg pfp

IMO, if crypto is ubiquitous, it will make adoption of small country currencies *easier*. Because I can pay you in whatever I have, and you can take your payment in whatever currency you want. Small governments can ask merchants to take payments in their (digital) fiat, pay taxes on it. tourists will use it and not even know.

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avi pfp

can’t you make a currency more trusted by backing up with gold, btc any other resource?

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Atlas Prime pfp

If it happens relatively quickly, those fiat currencies would inflate, the issuer would crumble. Inadvertently , more of the asset backing the stable would be required, strengthening (deflationary) that asset. The masses always win. De-Fi or death.

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spuddy pfp

Stables are already widely available everywhere?

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anna pfp

Nothing can be done, just like Zimbabwe.

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anna pfp

Nothing can be done, just like Zimbabwe.

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gentlegeeboss.base.eth pfp

gentlegeeboss.base.eth

Devaluation and finally adoption

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~ Elias pfp

There’s a reason why these countries have less trusted currencies/systems/govts. In these places they will simply ban economic exchanges in any currency other than local, so big moves such as in real state or transportation will still provide demand for their shitcoins. The only thing that comes from this is people might actually shield themselves from political-economic flaws, preserving some of their purchasing power which, at the very bottom of the line, will sustain a bit of the demand for local currencies. Power will still rule. But ppl will benefit at least.

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7.joints.eth pfp

https://media.tenor.com/1klug0wnglgAAAAC/cat-kitty

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orangie pfp

Yeah that's a good thought

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