Re:Coinbase suspending USDC:USD conversions over the weekend
by hailwren on Saturday March 11, 2023 @11:13AM
(#35109570)
You’re aware that ~$150B of $200B SVB deposits are not covered by FDIC insurance, correct? I don’t think SVB is going to end up 0, but pointing at 25% of investments being safe and saying “look regulation works so well” seems absurd.
Re:Coinbase suspending USDC:USD conversions over the weekend
by lukeschlather on Saturday March 11, 2023 @11:42AM
(#35109978)
All the people involved are institutional investors. 0% of people who have USD savings under $250k are affected by this. On the other hand, anybody who has a significant portion of their net worth tied up in cryptocurrency is affected by this.
Re:Coinbase suspending USDC:USD conversions over the weekend
by 101011 on Saturday March 11, 2023 @12:49PM
(#35110735)
Minor correction, people employed by companies that banked with SVB are also heavily affected here.
Re:Coinbase suspending USDC:USD conversions over the weekend
by FabHK on Sunday March 12, 2023 @08:00AM
(#35119103)
Indeed, if your company is in the banking business without understanding the banking business, you might have a surprise coming up. As in most other industries.
Re:Coinbase suspending USDC:USD conversions over the weekend
by johnmaguire on Saturday March 11, 2023 @12:53PM
(#35110760)
... and all the people and companies those companies banking with SVB have to pay?
The USD is entirely unaffected. Some deposits at certain banks are affected for large (mostly professional) holders. Retail investors will be made whole (up to 250k), thanks to this banking regulation thingy you might have heard of.
USDC is meant to mirror the USD (sure, with its concomitant FX and inflation risk), but it is certainly not meant to introduce credit risk vis-à-vis some bank most people hadn't heard of last week.