TE
TechEcho
Home24h TopNewestBestAskShowJobs
GitHubTwitter
Home

TechEcho

A tech news platform built with Next.js, providing global tech news and discussions.

GitHubTwitter

Home

HomeNewestBestAskShowJobs

Resources

HackerNews APIOriginal HackerNewsNext.js

© 2025 TechEcho. All rights reserved.

Why Stablecoin Issuers Are Shadow Banks

4 pointsby blitzballabout 2 years ago

1 comment

jqpabc123about 2 years ago
The article kinda glosses over an important point --- stablecoin issuers don&#x27;t just act like banks --- they act like the Federal Reserve.<p>An ordinary banks takes in a $1 deposit and issues up to $0.90 in loans.<p>A stablecoin issuer can take in $0 and loan any amount they choose.<p>It costs them nothing to disperse stablecoins to friends in exchange for IOUs. Friends who will then use the coins to buy&#x2F;sell and otherwise manipulate crypto prices in collusion with the issuer.<p>Bottom line: There is nothing to stop crypto prices from being rigged by stablecoin issuers --- aka the exchanges.<p>Musk called Dogecoin a &quot;hustle&quot; but the reality is actually much bigger than that --- the entire crypto market is a &quot;hustle&quot;.