Hi, will the "stablecoin transparency act" have impact on Djed?

Yesterday I asked this already 3 times but still did not received an answer so here once again: will the "stablecoin transparency act" have impact on Djed?

0

03.04.2022

René Автор вопроса

Fireflight
I'm not a team member of COTI, so not speaking in ...

Hi Fireflight, thanks for your extensive answer.

0

03.04.2022

Fireflight · Accepted Answer

I'm not a team member of COTI, so not speaking in their name, but here is my opinion about it: 1st of all, the bill hasn't been approved yet, so it's still a long way for it to become law. That said, the bill will probably have the most impact on fiat-backed stable coins like USDT & USDC, since they claim they have backed all minted stable coins 1:1 with actual fiat like USD or other physical assets/properties of equal value. There have been loads of FUD already about USDT for example, that they haven't got everything backed (since they aren't that transparent about it, no one can know right now), so if a "bank run" would happen on USDT, they wouldn't be able to handle that. Djed (and coins like Terra USD) are an algorithmic-backed stable coin. This is very different then coins like USDT & USDC, because there is a transparent treasury (since all the info is on the blockchain) and a smart contract is taking care of the pegging mechanism, to ensure that all minted stable coins are backed 100%. So the transparency act should not pose an issue, because everything is already transparent. Just my 2 cents

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Hi, will the "stablecoin transparency act" have impact on Djed?

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