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POST Strong and stable

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Circle noted that USDC is built on openness and accountability, with commercial issuers required to be licensed to handle electronic money, to have audited AML and compliance programs, to back all tokens on a fully reserved basis and to provide monthly published proof of reserves, to support fungible exchange and redemption of USDC tokens from other authorized issuer members, and to meet other reporting and review requirements established by CENTRE.

From Circle Rolls Out USD Coin | PYMNTS.com.

More like Mondex than Bitcoin, frankly.

So what is a “stablecoin” anyway? If it is meant to be a coin that maintains purchasing power over time then why would you back it with US dollars, which do not? If it is meant to be a coin that 

 

Well, this was first tried donkey’s years’ ago when Digicash launched. The idea of of a crypto coin that represented a dollar, a euro, a pound or whatever. This

 

There’s a difference between a currency and a currency board. A currency board issues a currency (let’s say Zimbabwean Dollars) that is backed by a 100% reserve in another currency (let’s say South African Rand). So, for example, if I issued DaveCoin and each DaveCoin 

Now, if that sounds pointless - why would you use DaveDollars when you could use USDollars? - you have to remember that lots of people do this already. When I give Safaricom at Kenyan Shilling, they in turn give me an M-PESA Kenyan Shilling which is more useful to me because I can send it to someone else using my mobile phone. All of the Kenyan Shillings that are in the form of M-PESA account balances are backed one-for-one by Kenyan Shillings in Safaricom’s bank account.

Under European electronic money laws, this is how things should work. If I give you an e-Euro, I ,must have an actual Euro in “tier 1” capital. The point of this is that 

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