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Federal Reserve Board requests comment on proposal to require certain payment stablecoin issuers to maintain an effective customer identification programFederal Reserve Board requests comment on proposal to require certain payment stablecoin issuers to maintain an effective customer identification program

This is kind of what I've been talking about (#1498307): stablecoins have an edge as long as they are not subject to as onerous regulations as traditional banking rails. I'm not at all convinced that GENIUS act regulated stablecoins can maintain this edge. The trend will certainly be to try to tie them down with all kinds of requirements.

Witness this new proposal by the Fed:

The proposal would introduce requirements for these stablecoin issuers that are comparable to customer identification program requirements for banks and credit unions. The proposal is being issued jointly with four other agencies.

You can find the whole rule-making proposal here

no one in the US was ever going to use stablecoins anyway...what is the use case? There literally is none unless you live in thr 3rd world with a basketcase currency

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The original promise for stablecoins was faster settlement on a blockchain, permissionlessness, no KYC.

As a side effect, the US government can export the dollar to the world while the petrodollar is retracting.

Once people get accustomed and comfortable using stablecoins, they will introduce the surveillance measures.

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108 sats \ 1 reply \ @unboiled 11h
The original promise for stablecoins was faster settlement on a blockchain, permissionlessness, no KYC.

Not sure where you heard that promise, but I'd check those again.

Centralized systems by design are the opposite of permissionless. And with permissioning, kyc in some shape or form is required. Then it is only a matter of time and/or growth for governments to start requiring even more.

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I know and I agree with you.

They were promoted as permissionless cause you could have just spun up an Ethereum wallet and start transacting with USDC without any KYC.

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Between this and Illinois tax law they passed feeling really deflated. Like what can you do to stop this madness

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Back in 2009 an anon released some code that fixes this.

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At least to stop using stablecoins for payments.

There was a time when I was excited that I could pay a flight ticket or something with USDC if I couldn’t pay with bitcoin.

Now in that scenario, I would just rather pay with fiat than contribute to stablecoin adoption for payments.

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I think I bought something from blockstream using liquid tether a long time ago.

I don’t use them for payments but I have used them for loans and to move fiat around or when I need to convert sats to dollars to pay bills

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Yeah they might be useful to protect yourself against Bitcoin’s exchange rate volatility.

Nobody’s perfect unless you have a massive bitcoin stack and you can afford to be 100% ideological with your actions.

But I often get a bit of an ick, a dirty feeling when I’m using USDC or USDT, like I’m doing something naughty..

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I hear ya but it is the fiat hell scape we live in.

I think the cypher punk movement lost a lot of its luster when all the exchanges slapped KYC on everybody and let the IRS tax it.

Also all the fraudsters and scammers stealing from honest people and those people have no way to get their property back and send the scammers to justice.

Now we have ETFs STRC and all the fiat nonsense because of the failure of the cypherpunks

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123 sats \ 0 replies \ @teemupleb 17h

Cypherpunks have not failed.

Bitcoin was made and allowed to stay open-source so that the elites (parasites) can also have their own escape hatch.

They don’t want their fiat trillions to be taxed into oblivion to placate the struggling “useless” plebe masses being replaced by AI.

Bitcoin self-custody and privacy tools will be waiting for them.

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futile

scamcoins aren't always in the us and can be made permissionless pseudonymous - it will be inpossible to regulate them

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The fee of stablecoins aren't suitable for low budget stories

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What if I don’t exist?

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I’m only into unstable things like myself

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Do you guys remember my old warning?

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