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A comment on Coinbase suspending USDC:USD conversions over the weekend. Parent comment

Re:Coinbase suspending USDC:USD conversions over the weekend by FabHK on Saturday March 11, 2023 @04:28AM (#35106825)
So a bit like stable coins? And do you have a source?
[ Parent | on HN ]
Re:Coinbase suspending USDC:USD conversions over the weekend by Scoundreller on Saturday March 11, 2023 @04:40AM (#35106872)
https://www.aljazeera.com/amp/economy/2022/2/3/lebanon-us-do...

> No withdrawals were allowed from accounts denominated in U.S. dollars, unless the owner agreed to convert the funds into pesos.

https://en.m.wikipedia.org/wiki/Corralito

[ Parent | on HN ]
Re:Coinbase suspending USDC:USD conversions over the weekend by FabHK on Saturday March 11, 2023 @12:15PM (#35110363)
These appear to be cases where government regulation was imposed to limit access to foreign currency. Not, as you seemed to be insinuating ("but don’t properly hold reserves for them"), any problem with banks carrying insufficient reserves.

So, there was neither a technological problem moving fiat in our out of the country that would be amenable to a technological fix, nor unintended weaknesses in the regulatory regime covering local banks. Rather, it was deliberate government policy.

[ Parent | on HN ]
Re:Coinbase suspending USDC:USD conversions over the weekend by Scoundreller on Saturday March 11, 2023 @01:34PM (#35111152)
> These appear to be cases where government regulation was imposed to limit access to foreign currency.

Cuz they spent/seized the bank’s foreign currency before you, the depositor, could spend them. So much for trying to protect your assets by holding them in foreign currency.

[ Parent | on HN ]