Stablecoins were tried during the most recent cryptocurrency bubble, and were in part responsible for the crazy valuations.
Problem was, the stablecoin issuers were basically fraudsters: they issued more “dollar coins” than they actually had dollars. The scheme fell apart when they couldn’t face audits, and people realized that their stable coin wasn’t actually guaranteed to be redeemable for $1.
I wonder what this looks like, though, when an already very well established and insanely capitalized corporate behemoth backs a stablecoin. The trust looks very different, as do the motivations. While the previous crop just wanted to make a quick buck, Facebook is presumably playing a long game of trying to become a player in the financial industry. This makes their coin a lot more trustworthy.
So the cryptocurrency might actually not suck, but the larger implications are even more worrying than Another Shitty Crypto.
