Well done. I agree on everything excluding: "This is why the financial surveillance state we all live under (BSA, Third Party Doctrine, PATRIOT Act) was built over the last 50 years as everything went online and cash usage declined. It wasn’t necessarily sinister, just a new technological modality"
Reporting thresholds have never/will never be adjusted for inflation, which increases the number of entities and individuals captured by regulatory requirements over time.
Not adjusting thresholds results in “bracket creep,” where more people or entities fall under regulatory mandates as inflation erodes the real value of the threshold, effectively expanding the regulatory net without legislators having to actively change laws or face the political fallout of explicit regulatory expansion which many could find: sinister.
It's not quite clear to me yet which and whether all Stablecoins are cash/cash equivalents on the accounting side. Reading the fine print on some of them, it seems they follow different areas of GAAP. I don't fault the author of the article for omitting this discussion. The accounting classification issue will be settled eventually. However, the accounting terminology is upstream of this whole debate. Is it worth lingering a second and to consider bank run scenarios? Tether FUD has died down, but are we willing to equate Stablecoins with treasuries just yet, even for trusted players like Circle? caveat empor† and as those who were around 2007/8 remember, everything that's packaged & bundled stinks. -F
I like "the platypus of payments".. one comment on mexico systems.. CoDi never really took off even though the government kinda pushed for it, a lot.. SPEI is king even P2P a P2B. You may go in some places buy some tacos and ask for their CLABE (18 digit id used by SPEI), you can also use SPEI with debt card numbers... There is even a cool service that lets you pay your tacos, or anything SPEI, with Lightning . I know you are not a fan of LN. You put the CLABE in your SWAPIDO web app, it generates a QR code with the amount and once you settle it sends immediately the MXN to said account via spei.. check em out.. https://app.swapido.com/en/auth/signin. https://www.instagram.com/reel/DJZhgUnOepT/?
Well done. I agree on everything excluding: "This is why the financial surveillance state we all live under (BSA, Third Party Doctrine, PATRIOT Act) was built over the last 50 years as everything went online and cash usage declined. It wasn’t necessarily sinister, just a new technological modality"
Reporting thresholds have never/will never be adjusted for inflation, which increases the number of entities and individuals captured by regulatory requirements over time.
Not adjusting thresholds results in “bracket creep,” where more people or entities fall under regulatory mandates as inflation erodes the real value of the threshold, effectively expanding the regulatory net without legislators having to actively change laws or face the political fallout of explicit regulatory expansion which many could find: sinister.
It's not quite clear to me yet which and whether all Stablecoins are cash/cash equivalents on the accounting side. Reading the fine print on some of them, it seems they follow different areas of GAAP. I don't fault the author of the article for omitting this discussion. The accounting classification issue will be settled eventually. However, the accounting terminology is upstream of this whole debate. Is it worth lingering a second and to consider bank run scenarios? Tether FUD has died down, but are we willing to equate Stablecoins with treasuries just yet, even for trusted players like Circle? caveat empor† and as those who were around 2007/8 remember, everything that's packaged & bundled stinks. -F
I like "the platypus of payments".. one comment on mexico systems.. CoDi never really took off even though the government kinda pushed for it, a lot.. SPEI is king even P2P a P2B. You may go in some places buy some tacos and ask for their CLABE (18 digit id used by SPEI), you can also use SPEI with debt card numbers... There is even a cool service that lets you pay your tacos, or anything SPEI, with Lightning . I know you are not a fan of LN. You put the CLABE in your SWAPIDO web app, it generates a QR code with the amount and once you settle it sends immediately the MXN to said account via spei.. check em out.. https://app.swapido.com/en/auth/signin. https://www.instagram.com/reel/DJZhgUnOepT/?
Thanks again for the informative analysis. When it comes to Pull Payment, either consumer or institutional, why only open loop players?
Great piece
Just read this piece this morning. Is this true?What is your response?
https://substack.com/@richturrin/note/c-151593968?r=226g8q&utm_medium=ios&utm_source=notes-share-action