Binance freezes withdrawals of stablecoin USDC as investors pull $2B

Re:Binance freezes withdrawals of stablecoin USDC as investo... by thatguy0900 on Tuesday December 13, 2022 @01:43PM (#33973712)

It is less of a dollar, because I can say you can exchange it for a dollar when you can not, in fact, exchange it for a dollar when you try to,because I never had enough(or any) dollars. In the real world when the bank runs out of dollars the government will give me dollars instead.

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Re:Binance freezes withdrawals of stablecoin USDC as investo... by aeternum on Tuesday December 13, 2022 @02:54PM (#33974761)

For US citizens perhaps, but if you're a Russian citizen or company, the USD in your bank account is now just a worthless database entry.

Just because that weapon hasn't been pointed at some group of US citizens yet doesn't mean it can't in the future.

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Re:Binance freezes withdrawals of stablecoin USDC as investo... by hef19898 on Tuesday December 13, 2022 @03:16PM (#33975104)

Maybe, maybe not. In the meanwhile SBF and similar figures are happy to protect your money in crypto assets.

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Re:Binance freezes withdrawals of stablecoin USDC as investo... by aeternum on Tuesday December 13, 2022 @06:42PM (#33977957)

Not your keys, not your coins. Those not willing to learn self-custody are definitely better off in USD.

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Re:Binance freezes withdrawals of stablecoin USDC as investo... by jacquesm on Tuesday December 13, 2022 @03:26PM (#33975237)

> In the real world when the bank runs out of dollars the government will give me dollars instead.

Up to a point.

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Re:Binance freezes withdrawals of stablecoin USDC as investo... by rufusroflpunch on Wednesday December 14, 2022 @03:07PM (#33989551)

I think that is a fair critique, but that will be coming at some point, very likely. Either a law requiring 100% liquid reserves, or a law bringing them into the FDIC system.

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