Backing Stablecoins With Bitcoin or Altcoins Eliminates This Massive Risk, Says Terra (LUNA) Founder Do Kwon - BitcoinEthereumNews.com
BitcoinAng Pag-back sa Mga Stablecoin Gamit ang Bitcoin o Altcoins ay Tinatanggal ang Malaking Panganib na Ito, Sabi ng Tagapagtatag ng Terra (LUNA) na si Do Kwon04 / 14 / 2022Balita ng Ethereum ng Bitcoin Terra (LUNA) founder Do Kwon says that backing stablecoins with the US dollar may limit the use cases of these assets. In a new interview on CNBC, Kwon Kinikilala the potential risks that come with pegging stablecoins, which are crypto assets backed by a reserve asset such as fiat or another cryptocurrency to offer price stability against the dollar. I don‘t think that there’s anything wrong, per se, with backing stablecoins in terms of dollars. Its just that there are some limits to the things that you can do with the use cases of the so-called centralized stablecoins. The issue is that if you‘re keeping a dollar in the bank account for every unit of stablecoin that’s issued, that stablecoin now has an issuer and an operator. What that means is that you have all the attendant compliance and custodian risks of having an operator and an issuer because, for instance, what happens if the company for some reason goes bankrupt? In that case, everybody that built interesting things