Re:Coinbase Drops Promise of Token’s Cash Backing That Wasn’...
by elliekelly on Wednesday August 11, 2021 @11:07AM
(#28142921)
It most certainly is not the same. Take WaMu, for example. I think it was the largest bank failure in the history of the United States and it was largely due to a bank run.
Do you know how much money depositors lost? $0.00
And I don’t mean only up to the FDIC insured amount. Even those with WaMu deposits well in excess of FDIC coverage didn’t lose a penny. And it wasn’t thanks to the complex system of placing overnight deposits at various institutions for pass-through coverage in excess of the FDIC amount.
Because do you know how much money the FDIC insurance fund lost paying out claims to WaMu depositors? $0.00
Do you know who did lose a lot of money? WaMu investors and shareholders.
That is not even remotely close to how a stablecoin or crypto “bank run” would play out. Our banking system has built-in safety nets that work. Crypto safety nets don’t even exist.
Do you know how much money depositors lost? $0.00
And I don’t mean only up to the FDIC insured amount. Even those with WaMu deposits well in excess of FDIC coverage didn’t lose a penny. And it wasn’t thanks to the complex system of placing overnight deposits at various institutions for pass-through coverage in excess of the FDIC amount.
Because do you know how much money the FDIC insurance fund lost paying out claims to WaMu depositors? $0.00
Do you know who did lose a lot of money? WaMu investors and shareholders.
That is not even remotely close to how a stablecoin or crypto “bank run” would play out. Our banking system has built-in safety nets that work. Crypto safety nets don’t even exist.