furio on Nostr: After listening to Luke Gromen on Coin Stories podcast, I have a proposal: Allow US ...
After listening to Luke Gromen on Coin Stories podcast, I have a proposal:
Allow US regulated banks to issue FDIC backed stablecoins under the following conditions:
1. Each bank is responsible for their own coin (no collusion of rules, funds,etc, and no government intervention so no CBDC risk)
2. 100% funded by treasuries and the treasuries allocated to the coin must never go below 100% (so the FDIC will never be used to pay coin redemptions). If the bank fails outside of the coin, FDIC would backstop the tradfi element.
Under this proposal the customer gets :
- competition for their dollar IOU so accountability.
- protection from rug risk with FDIC insurance
The federal government gets guaranteed buyer of treasuries.
The bank gets interest income on 0% loans gladly given to them by customers.
Non-FDIC stables would be drained and the US would get citizens of countries from all over the world with ability to purchase USTs with little to no friction.
Allow US regulated banks to issue FDIC backed stablecoins under the following conditions:
1. Each bank is responsible for their own coin (no collusion of rules, funds,etc, and no government intervention so no CBDC risk)
2. 100% funded by treasuries and the treasuries allocated to the coin must never go below 100% (so the FDIC will never be used to pay coin redemptions). If the bank fails outside of the coin, FDIC would backstop the tradfi element.
Under this proposal the customer gets :
- competition for their dollar IOU so accountability.
- protection from rug risk with FDIC insurance
The federal government gets guaranteed buyer of treasuries.
The bank gets interest income on 0% loans gladly given to them by customers.
Non-FDIC stables would be drained and the US would get citizens of countries from all over the world with ability to purchase USTs with little to no friction.