USDC Question

[mrob82]

I have been doing a lot of research and can't come to a clear conclusion, wanted everyone's thoughts.  Has the US Government already made a partial move in order to try some sort of solidification to ensure that the world currency is still going to be backed by a US controlled asset?  USDC has already been used to solidify trade in Venezuela, was this the first step?

“This, I believe, marks really a first where the U.S. is effectively executing a global foreign policy objective with stablecoins for foreign aid because the existing dollar banking system can’t do the job.”

Like with Airtm’s previous efforts, all local residents need to receive the stablecoins is a mobile phone and some way of accessing the internet.

My thought process is that the US government realizes that they can't do this to control a more stable country so they had to start with a country with instability and one with a lackluster government footprint.  Is Venezuela their test bed?  The US government is not going to go down without a fight, they made way too much money having every other currency backed off the USD.

I'm thinking this could be a good opportunity to get involved, especially if USDC is going to act as a pegging instrument against non-US currency.  I'm also thinking, just stay the piss away.

Newbies and oldies alike need to make sure they are aware of this because this is just going to continue to happen, they realize that as a government they can either try to drive the train or end up getting run over by the train. 

Thoughts?

Resources:
https://www.coindesk.com/circle-usdc-venezuela-airtm

[jackg]

Most governments receive a collision from anothers' train anyway. I think it's extremely u likely the dollar remains a world reserve currency for long. A lot of countries also use the euro and if China and Russia split (which has potential by the end of the decade) one of the countries produced by those may be powerful enough to knock the dollar out of the contest.

[mrob82]

Most governments receive a collision from anothers' train anyway. I think it's extremely u likely the dollar remains a world reserve currency for long. A lot of countries also use the euro and if China and Russia split (which has potential by the end of the decade) one of the countries produced by those may be powerful enough to knock the dollar out of the contest.

I agree, I just think they are going to have to transition.  It didn't take long for the government to move from the gold backed dollar, but the overall ramifications took a while to play out.  I am just wandering if it's going to be the reverse this time.  Globally are we going to see ramifications in the short term, but continued resistance to the change - or some combination of the two.  I just see too many things where the US government is setting up for control or manipulation, or some percentage of the two. 

[JeromeTash]

The US has been doing this kind of thing for long when it comes to unstable countries from Invasions to sanctions. So using USDC is a tip of the iceberg of what the US can do to try and control the way a country is run.
Obviously they will find it had doing this kind of thing to stable countries/countries that are in that league of superpowers such as China, Russia etc

[jackg]

The US has been doing this kind of thing for long when it comes to unstable countries from Invasions to sanctions. So using USDC is a tip of the iceberg of what the US can do to try and control the way a country is run.
Obviously they will find it had doing this kind of thing to stable countries/countries that are in that league of superpowers such as China, Russia etc

Is dai not a safer bet for countries to use if they're sanctioned by the US? I thought it was less mutable than usdc but I could be wrong if there's still a possiblity for a central authority to liquidate your assets.

I agree, I just think they are going to have to transition.  It didn't take long for the government to move from the gold backed dollar, but the overall ramifications took a while to play out.  I am just wandering if it's going to be the reverse this time.  Globally are we going to see ramifications in the short term, but continued resistance to the change - or some combination of the two.  I just see too many things where the US government is setting up for control or manipulation, or some percentage of the two. 

Transitions are inevitable and if we can (and we likely will) get cheaper Smartphones and better connections in some parts of the world (or even covering the world in Internet access) that isn't controlled by a single private entity that could cut someone off if they don't want them to have access then I think we will see large moves forward and towards decentralisation but a country might be able to introduce its own cbdc in this case which I think would be more favourable.

[JeromeTash]

Is dai not a safer bet for countries to use if they're sanctioned by the US? I thought it was less mutable than usdc but I could be wrong if there's still a possiblity for a central authority to liquidate your assets.

It's a better choice, unfortunately so many people are ignorant about cryptocurrencies let alone bitcoin. Even today I still see people struggling to make international money transfers and struggle with the hefty fees and having to wait for days for the transactions to be approved and when I try to suggest to them to use Bitcoin. They even have no idea what it is.

In the case as stated in the OP, it's the US trying to bypass the country's ruling government and their central bank by sending to the funds to the affected people through a payments partner of USDC in the Country. Obvious they had to pick a centralized company they can easily control like Coinbase/Circle and their stable coin USDC. I don't think they would dare use DAI which is said to be decentralized.