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US Treasury to Allow Blockchains, Stablecoins for Bank Payments (occ.gov)
51 points by undefined1 on Jan 5, 2021 | hide | past | favorite | 17 comments


> the speed, efficiency, interoperability, and low cost associated with these products

These are generally not considered features of Bitcoin.


Have you read anything about Bitcoin upgrades or new second or third layer solutions of the last four years?

Liquid is a side chain that works with “blinded” amounts (so you can see a transaction but not an amount) and works with blocks every few seconds.

Lightning is another second layer tech that allows transaction within seconds.

RGB is a third layer tech on top of Lightning that allows you to create stable coins or other useful banking applications.


These will be private blockchains, not the public bitcoin network.

They don't really have any benefits over a centralised database except sounding good to management.


Exactly, and they have no incentive to make random public stablecoin bagholders rich.


I can assure you that no one is "bagholding stablecoins" in hopes to become rich.


They are referring to Ethereum, not Bitcoin.


You understand this is a vast space with many coins and technologies being developed, BTC being only one...


True, but have you see the current state-of-the-art? It’s ACH.


ACH is free to the user, convenient, safe, well understood, and the energy requirements aren't insane.

Any banks foolish enough to process cryptocurrency transactions will have to meet all the same banking requirements for anti-moneylaundering, anti-terrorism, rogue states, etc. These sort of requirements are part of the reason for delays. International transactions can also get delayed because of shoddy foreign banking servers which may simply be down.

All of these problems remain, but an additional constraint of requiring consensus and hashing is imposed.

This is a version of second system syndrome where even the naive variant doesn't sound good on paper.


Agreed that crypto and banking seem like oil and water for the issues you mentioned.

ACH is far from safe. The keys are printed on every check, the transactions aren't reversible, the settlement times are practically untenable for business. I've sold and bought payroll services, charged my customers with ACH, paid vendors with ACH, read the gawdawful spec, and I haven't much good to say about it, other than it mostly works, and enough people know it well enough.


Further reading for the curious:

The official rules: https://www.firstmid.com/wp-content/uploads/2014/02/2013-Cor...

https://files.nc.gov/ncosc/documents/eCommerce/bank_of_ameri... This is the cleanest implementation guide I've ever seen. Its a breeze compared to the former.

Fraud issues: https://bankinnovation.net/allposts/focus/comp-reg/ach-is-a-...

A dev's take: https://security.stackexchange.com/questions/85046/what-prot...

> Note that ACH was never designed to fullfil the task it's currently used for.


This explains the 30% 24hr growth of Stellar. Stellar has been working in this area for years and is built to facilitate exactly these types of transactions. I think they are probably the best positioned to take this on.

Also, Stellar USDC support was already slated for February.


Pretty sure Ethereum is best positioned for this.


Definitely not. Ethereum is on top of the DeFi world, for sure. But DeFi is not CeFi. As an analogy: DeFi is to smart contracts as CeFi is to “dumb” contracts. The legal entity behind Stellar has significantly more of the latter than the entity behind Ethereum--which has none, to my knowledge. ... Plus, gas fees. It's currently cheaper to wire money than to send some ETH.


> Plus, gas fees. It's currently cheaper to wire money than to send some ETH.

Wrong. If all you wish for Christmas is to send some ETH, look no further than into ZK-Rollups such as zkSync & Loopring.

1) A transfer costs around $0.01 in fees.

2) ZK-Rollups are not sidechains. These are layer 2 solutions that settle on Ethereum with a novel trust model of 1-of-N: you only need to trust that a single node is honest!

3) Exchanges (such as Coinbase) would eventually support depositing/withdrawing to a rollup, which means most folks would never need to interact the expensive base layer directly.

Sending money across countries has never been cheaper, faster & as secure as it is now on an Ethereum ZK-Rollup.


USDC runs on ethereum


Replacing a currency beholden to people through government, fiat, namely world-reserve USD, with one that is beholden only to who owns it and who owns the most cutting-edge computing power, what could possibly go wrong?




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