zlacker

At the end of the day, for better or worse, the US dollar is backed by the US military. Virtual coins are backed by the greater fool.

What a strange toss-up.

>>irishc+(OP)
But the stable coins are also backed by the US military. All major USD stablecoins have sanctions mechanisms baked into their smart contract.

See for yourself the blacklist features

https://github.com/circlefin/stablecoin-evm/tree/master/scri...

>>irishc+(OP)
Usdc is backed by US dollar denominated treasuries for most major issuers.

>>irishc+(OP)
Since the GENIUS act [1], stablecoins have been backed by the US military too, as long as the stablecoin issuer itself keeps its reserves in U.S. Treasuries.

It's an interesting point about currencies being backed by military force though. Given the recent technological advancements in drones and robotics, it makes me wonder if someone will launch a non-GENIUS-act-compliant cryptocurrency and then back it simply by military force.

[1] https://www.congress.gov/bill/119th-congress/senate-bill/158...

>>anukin+V1
Is there actually any proof of this or is it Tether-tier magic money?

>>irishc+(OP)
> US dollar is backed by the US military.

No, it's not. It's not possible to come to the US soldiers with a bunch of US dollars and some demands and get what's demanded in return for the dollars.

Only trust of the other market participants backs the US dollar.

>>anukin+V1
It's broadly agreed that hasn't been the case for a while now, but that at the moment it's better for everybody if we pretend it still is

>>zx8080+3n
It's the other way around. If you don't trade in dollars, the military comes and demands that you do.

>>direwo+zJ
Is the peso backed by the Mexican government? Because I'm afraid of all these militaries coming and knocking down my door to use their money.