Curious if people would keep 500K USD in the bank or as USDC/USDT?

[cionide]

Diversify. Keep some in a bank with some in USD and some in one or more other currencies. 5-10% in physical gold or silver and bury it in your yard somewhere. I'd probably not trust any stablecoin with more then 40-50k, as there is a rather large risk there. MICA basically ended USDT in Europe, who's to say it won't end in the US sooner or later? Who's the say some regulations won't f**k USDC? What happens if it turns out Tether or Circle don't actually have the money they claim to have and it "de-pegs" and you're left with 8 cents on the dollar overnight?

 

[Compliance Circle]

cionide said:
Diversify. Keep some in a bank with some in USD and some in one or more other currencies. 5-10% in physical gold or silver and bury it in your yard somewhere. I'd probably not trust any stablecoin with more then 40-50k, as there is a rather large risk there. MICA basically ended USDT in Europe, who's to say it won't end in the US sooner or later? Who's the say some regulations won't f**k USDC? What happens if it turns out Tether or Circle don't actually have the money they claim to have and it "de-pegs" and you're left with 8 cents on the dollar overnight?
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USDC and Tether are on completely different levels of transparency and structuring of their underlying assets holding.

USDC: 85% of USDC underlying assets are being kept in publicly trading series fund managed by BlackRock. Circle is audited in the US as US company by Deloitte.

Tether: HQed in El Salvador, notoriously secretive about nature and composition of their reserves, being audited by BDO ITALY (!) - FYI, BDO has office in El Salvador as well.

Thus, USDT has much more risks of being -cked by governments around the globe or being a pyramind.

 

[cionide]

Compliance Circle said:
USDC and Tether are on completely different levels of transparency and structuring of their underlying assets holding.

USDC: 85% of USDC underlying assets are being kept in publicly trading series fund managed by BlackRock. Circle is audited in the US as US company by Deloitte.

Tether: HQed in El Salvador, notoriously secretive about nature and composition of their reserves, being audited by BDO ITALY (!) - FYI, BDO has office in El Salvador as well.

Thus, USDT has much more risks of being -cked by governments around the globe or being a pyramind.
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I will admit I did not look up the auditing etc on USDC and only read in the past about USDT but my point still stands regarding stablecoins in general. They're only as good as their backing.

 

[joshi49]

Compliance Circle said:
USDC and Tether are on completely different levels of transparency and structuring of their underlying assets holding.

USDC: 85% of USDC underlying assets are being kept in publicly trading series fund managed by BlackRock. Circle is audited in the US as US company by Deloitte.

Tether: HQed in El Salvador, notoriously secretive about nature and composition of their reserves, being audited by BDO ITALY (!) - FYI, BDO has office in El Salvador as well.

Thus, USDT has much more risks of being -cked by governments around the globe or being a pyramind.
Click to expand...

In addition, due to the new MiCA Laws in the EU, USDT cannot be bought or sold on centralized exchanges by residents of the EU anymore. USDC is compliant and can still be bought or sold.

 

[ilke]

Compliance Circle said:
USDC and Tether are on completely different levels of transparency and structuring of their underlying assets holding.

USDC: 85% of USDC underlying assets are being kept in publicly trading series fund managed by BlackRock. Circle is audited in the US as US company by Deloitte.

Tether: HQed in El Salvador, notoriously secretive about nature and composition of their reserves, being audited by BDO ITALY (!) - FYI, BDO has office in El Salvador as well.
Click to expand...

What is wrong with BDO Italia? Also the composition is public.

But yes, the transparency is lower with Tether than Circle. On the other hand, Tether is still the standard for payments.

 

[wellington]

Circle barely makes money - coinbase is the main benefiter

Tether makes money hands over fist

DAI has the risk circle has - as it's backed by it for a large %

 

[JohnnyDoe]

Remember what was already discussed here about USDT and its 3-letters supporters, Inspector Gadget, FTX and the various US court cases. Only keep in USDT what you need for next week's expenses, or month's at a stretch.

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