The more I read the more I’m convinced that a 1:1 full reserve stablecoin is a loosing proposition for the issuer. Yes OF COURSE you can make money with a fractional reserve ratio but maybe not enough to offset your losses if people are giving you bitcoin in exchange for stablecoins as the price deteriorates.

But so many of these coins purport to be full reserve which makes no sense. Just blows my mind and gives me a headache.

Written by

Incentives architect for TandaPay

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store