#stablecoins #bitcoin #btc #tether #USDT #USDC #Circle #crypto
quoting“We believe that for the long run building on the steel foundations... It should not be backed by a centralized system. So, any stablecoin based system will be backed by money in a bank.
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We talk about stablecoins as running on top of blockchains. That's actually the wrong way of thinking about stablecoins.
We think about technologies in layers. If you are using a stablecoin, the base layer is the one that determines the value, the one that provides you the fundamental protection. The base layer of a stablecoin is some bank. Actually, that's not even the base layer. The base layer of the USD stablecoin is the US government.
The next layer is a bank where the money that has been printed by the government is held in. The layer 1. Then the layer 2 will be the private company that is managing that account, Tether or US Circle. And the layer 3 is the given blockchain that they have chosen to hold some of their cryptocurrency in… Ethereum, Stellar, or so on. And then if you are using a rollup or so, then that is layer 4.
And it would be the same if it’s on Bitcoin. If it's on Bitcoin... when Bitcoin comes in, it will after the US government, after the bank, after Tether or Circle, so it's Layer 4 when Bitcoin comes in if we have a stablecoin running on Bitcoin. You have to think about it in terms of the ability to censor.
And with Bitcoin, the Layer 1 is Bitcoin. There is nothing below that. And it's the most decentralized money that exists.”
- Obi Nwosu (CEO of npub1uq70uqgas9pyhds2zt57kr9se8rg3s68ztphjnq82ts8rzeknmeql7u0c2 ) on the npub1lr2zzf989mvf393y0tv39ara6a4vddkd6y87z784up9vl6ks6j3qtudl6a media
https://www.youtube.com/watch?v=UszQswTGlVc
To summarize: Sats. Must. Flow.
#fedi #fedimint #bitcoin #btc #stablecoins #stablecoin #tether #circle #Ethereum #Stellar #politics #USDT #USDC #sats