> On the other hand, stable-coins suffer the same problems as visa. They're centralised, and subject to zealous regulations.
Not all stablecoins are the same. There exists 2 main categories: Fiat-backed (as initially described), & collateral-backed.
(There also exists hybrid versions, but they're a combination of the 2, and as such will be covered by just mashing the 2 categories together.)
Fiat-backed stablecoins (USDC, USDT) are centralized: Their connection to external cash/bonds requires them to have an accountable name to be attached to.
Collateral-backed stablecoins (GHO, DAI/USDS) don't have to be centralized. A primitive form of this is a stablecoin (S) that can take in any other token as collateral and return $X amount of S stablecoins, up to a limit of (total_token_value * collateral_limit). However, it is known that this structure is inefficient capital-wise, when compared to fiat-backed stablecoins.
Not all stablecoins are the same. There exists 2 main categories: Fiat-backed (as initially described), & collateral-backed.
(There also exists hybrid versions, but they're a combination of the 2, and as such will be covered by just mashing the 2 categories together.)
Fiat-backed stablecoins (USDC, USDT) are centralized: Their connection to external cash/bonds requires them to have an accountable name to be attached to.
Collateral-backed stablecoins (GHO, DAI/USDS) don't have to be centralized. A primitive form of this is a stablecoin (S) that can take in any other token as collateral and return $X amount of S stablecoins, up to a limit of (total_token_value * collateral_limit). However, it is known that this structure is inefficient capital-wise, when compared to fiat-backed stablecoins.