A stable coin has to have an agent, a institution, an organization that is making sure that it's one stable USDC to the dollar. And you're somewhat at the mercy of whoever's moving that around. But for something like USDC, someone has to basically have a dollar in reserve for every USDC coin that exists. If this is something that needs to be audited people to have to trust the auditor There's no guarantee unlike Bitcoin and others that are not pegged to something. Those,. those are things where the value is actually just set by the market which arguably you could trust more or less depending on your risk.
Devon Zuegel talks with EconTalk host Russ Roberts about the crazy world of money and finance in Argentina. When inflation is often high and unpredictable, people look for unusual ways to hold their savings. And when banks are unreliable because of public policy, people look for unusual ways to keep their savings safe and to make financial transactions. Welcome to Argentina, where Zuegel finds surprising applications of cryptocurrency for solving problems.