Re:Coinbase is launching support for the USDC stablecoin
by lallysingh on Tuesday October 23, 2018 @03:56PM
(#18286862)
Which factors? Who'd buy them at a premium? Wouldn't any auction of >1 bidders stabilize at face value?
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Re:Coinbase is launching support for the USDC stablecoin
by JumpCrisscross on Tuesday October 23, 2018 @05:11PM
(#18287521)
> Which factors? Who'd buy them at a premium? Wouldn't any auction of >1 bidders stabilize at face value?
Think of the stablecoin as an ETF. If people need to launder money or take advantage of a programmatic bug, that would raise the stablecoin price over $1.
By default, I'd imagine the reduced liquidity and counterparty risk (relative to dollars) would cause the stablecoin to trade at a discount to cash, particularly when auctioned by the government. (You have to spend resources monitoring the auction, closing the transaction, and cashing out to complete the arbitrage.)