How can an organisation like a bank go about setting up and running a stablecoin on ICP?
There is no such thing as stablecoin. It is a myth. The USD is dead. Don’t believe me. Here is OG cypherpunk himself: Fiat-pegged coins like Tether, USDC, and Dai, don’t deserve to be called “stable”-coins. Fiat currencies are not stable. - Zooko. The sooner this myth dies the better crypto will be.
But 1usd=1usd. Always. If we want to transport usd on chain then it has to be a digital twin living on chain, which is stablecoin.
The confusion is created by this statement.
Within its own economic system fiat1=fiat1, always. The same holds true for fiat2. Thus within their own economic environments the fiat are stable. Disparity occurs when economic environments interact. This disparity in economies will fluctuate over time as perception of each environment changes even though fiat 1 and fiat2 are both stable within their own environment. The resulting disparity between fiat1 and fiat2 means that although the pair can be = they may not always be =. So in relation to the pair there is no stability.
Stablecoins would be no exception to this when paired to a specific fiat. As when these assets were redeemed in a country not using the specified fiat there would be disparity.
Biggest use case: Enterprises need to transact in the currency they pay taxes in.
I have nothing against fiat. I just have a problem with the world stable. Nothing is stable. Life by its very nature is changing. Currencies collapse all the time throughout history. But yes we need rails into the traditional banking system via national currencies. I think it is good. I know Stellar has done a good amount of work with their protocol. Everything is just information that is traded around. The main problem with all these currencies including BTC and ICP is that they are not private. In regard to ICP it doesn’t matter because it is more of a way of trading ownership in the eco and governance but we need privacy coins like ZEC because they are important to human freedom.
Correct. I would like to know how one can set up a stablecoin on ICP.
Currently working on one for IC but probably will announce it after the ETH integration is done if nothing changes before.