New York state approves two stablecoins0.17

New York state has approved two new so-called "stablecoin" cryptocurrencies, meaning both will be pegged to the U.S. dollar on a one-to-one basis. The Gemini dollar is Ethereum-based and comes from twins Cameron and Tyler Winklevoss, while the Paxos Standard is from a relatively unknown startup called Paxos. Here are some reactions from around the cryptosphere.

Tyler Winklevoss claims this is "the world’s first regulated stablecoin":

Tyler Winklevoss
@tylerwinklevoss

Super excited to announce the launch of the Gemini dollar, the world’s first regulated stablecoin! So proud of our amazing team. cc @GeminiDotCom bit.ly/2CDoFHe

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But Preston Byrne calls Gemini's coin a "coupon" rather than a "stablecoin":

Preston Byrne
@prestonjbyrne

But, to be clear, the Winklevoss “stablecoin” is not a “stablecoin.” It’s a coupon for USD held at a bank.

It doesn’t legitimize the broken “stablecoin” concept peddled by Reserve, Basis, MakerDAO and others. At all.

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What are the use cases? Just a few right now...

Ryan Sean Adams
@RyanSAdams

Use cases for stablecoin:

1) Trading pair for crypto
2) Holding for volatility hedge
3) Using in Ethereum Economy

That's kinda it right now

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Joseph Young thinks this is good news, since the alternatives (notably, Tether) are unregulated:

Joseph Young
@iamjosephyoung

I think Winklevoss stablecoin is more important to crypto than an ETF in 2018.

Why?

Trusted custody will facilitate capital from institutions. (no urgent need for ETF)

Current alternatives (USDT, TUSD) are unlicensed. Gemini dollar is audited in the US and licensed by NYDFS.

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Although one anonymous Twitter user pointed out the irony: we're now dependent on institutions again.

gem cleaning [LTC]
@gemcleaningcc

@iamjosephyoung The joke is now we all depend on the institutions we thought are the problem in the first place 🤦🏻‍♂️😅

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