> Just as an FYI, USDC & stablecoins (and CBDC's) are centralised and the same abuse of power is possible here too.
It's the unfortunate consequence of one gigantic unaddressable problem:
USD can only be minted efficiently by the Fed.
- Collateralized stablecoins exist, but they're inefficient in that they must be overcollateralized to cushion against falling asset values.
- USDC & their kind are efficient, but at the cost of being centralization vectors as a result of current US legislation
- An efficient synthetic stablecoin can exist, but it requires deep liquidity in the marketplace to keep the peg stable. (Probably > $100B at the ready to absorb panic sells) Synthetic stocks are the closest analogy available for this, but applied upon a currency. The chicken-and-egg means that bootstrapping something like this is not feasible at small scales: It needs to be big from the get go.
