Former top official says Fed should ‘Maybe’ create ‘FedCoin’ to rival Bitcoin

Re:Former top official says Fed should ‘Maybe’ create ‘FedCo... by bitreality on Saturday May 05, 2018 @09:06AM (#17001649)

Definitely one issue with crypto-currencies today is that they have volatile pricing which makes them difficult to use in commerce. There are several projects working to use smart contracts in order to peg the value of the coin to currencies like USD, EUR, etc. As liquidity increases in decentralized exchange formats, such as atomic swaps and DEX applications, there will be enough volume to properly manage these smart contracts to peg coins to fiat currencies.

A unit of account from my understanding simply means that other people are willing to price their goods/services in your currency. This is a by-product of people participating and using the token, and it being stable enough. So once there is a "stablecoin" that gains traction, this will surely follow.

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Re:Former top official says Fed should ‘Maybe’ create ‘FedCo... by 0x445442 on Saturday May 05, 2018 @11:21AM (#17002166)

I've enjoyed your posts in this thread but I have a question. How are the projects you allude to fundamentally different than PayPal, iPay, GooglePay, Venmo or just strait up Visa or MC?

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Re:Former top official says Fed should ‘Maybe’ create ‘FedCo... by bitreality on Saturday May 05, 2018 @12:36PM (#17002519)

Crypto-currency is different in the sense that it is decentralized. Paypal and other payment systems can and do freeze people's balances at will. Many countries have features disabled. Some countries are flat out discluded.

At the end of the day, there is no button that can be pressed to remove your access to the system.

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Re:Former top official says Fed should ‘Maybe’ create ‘FedCo... by diegocerdan on Saturday May 05, 2018 @01:42PM (#17002798)

MakerDAO is a great example of a decentralized stablecoin on the Ethereum network. I personally own some DAI tokens that are pegged to the dollar.

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Re:Former top official says Fed should ‘Maybe’ create ‘FedCo... by MorbidCuriosity on Saturday May 05, 2018 @04:33PM (#17003633)

The problem is a catch 22, you cannot be stable until you gain volume and you cannot gain volume until you are stable.

Simply using a smart contract between two parties doesn't give the underlying coin stability, and it introduces the risk that one party ends up with an undervalued/overvalued coin. The average person will still earn in dollars, shop in dollars, pay tax in dollars and do accounts in dollars. The demand for crypto as a result will be restricted to speculators, criminals and (some) geeks. I cannot see stability anywhere on the horizon.

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