Does being pegged to a banknote really mean they constitute the same/equivalent liability?stablecoins are a financial liability by definition
But I do think blockchain-based voting gets rid of a lot of opportunity for corruption and rigging, and may even be more democratic if quadratic voting is used, depending on your beliefs.the original sin of developers is the dream that somehow there's a technology that will make politics redundant. but no such technology exists
As far as I know, stablecoin issuers are not obligated to have a supply of dollars to back up the stablecoin supply. Some are actually collateralized by other, non-stable crypto assets (see DAI and makerDAO)Does being pegged to a banknote really mean they constitute the same/equivalent liability?
well yeah that's how this goes, even stablecoins are not really "stable" in any meaningful senseAs far as I know, stablecoin issuers are not obligated to have a supply of dollars to back up the stablecoin supply. Some are actually collateralized by other, non-stable crypto assets (see DAI and makerDAO)
suppose you are a corporation rather than a bank, and you issue a bondMy understanding of the banknote being a liability is that, archaically, the bank is obligated to accept that note and return whatever was initially deposited, say gold.
Is the reasoning different, as to why a banknote is a liability?
Well stable enough to, say, get exposure to DeFi protocols without the price volatility.well yeah that's how this goes, even stablecoins are not really "stable" in any meaningful sense
I’m inclined to say yes, as you would be obligated to repay the principal plus interest to the bond recipient, no?is this bond a liability?
But when a bank does it, as a bond recipient you are then also incurring all of the short term liabilities that bank has in the form of deposits, short-term liabilities that I’d imagine most companies don’t have, right?so when a bank does it, no difference
"money" is really just a v short term bond issued by a bankBut when a bank does it, as a bond recipient you are then also incurring all of the short term liabilities that bank has in the form of deposits, short-term liabilities that I’d imagine most companies don’t have, right?