Recently, Coinbase announced that it is adding the option to use USDC, the dollar-pegged coin issued by the Circle app. Other new stablecoins are being issued, and already-growing projects like TrueUSD (TUSD) and Gemini Dollar (GUSD) are slowly increasing their supply and expanding their influence. All of this is happening while the leading coin, Tether (USDT) is rapidly removed from circulation.
https://twitter.com/ferdousbhai/status/1054941373634355200
Here are the top problems that the mass adoption of stablecoins can lead to:
Centralized control: Usually, no matter what method of stability is used, stablecoins have one central issuer. The code and behavior of the coins or tokens are pre-decided, and the power to issue more coins falls with the project’s creators. There is no limit to the minting of stablecoins - unlike Bitcoin and other assets that have a capped supply, in an attempt to mimic non-inflationary money. The technology allows a virtually limitless supply of stablecoins.
https://twitter.com/el33th4xor/status/1055331695694675968
But a stablecoin created by a team or a corporate entity is a financial tool, with th...
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