It’s remarkable that putting fiat currency on a blockchain was enough to make us call it “stable.”
So called stablecoins are 'ideally' backed by fiat one to one, but fiat is not stable in price and the coin can be seized and infinatly minted.
Actually we don't even know how and if they are backed. More often than not they are not even backed by fiat itself but bonds which esentially means if you have it you pay / hold government debt.
'Fiatcoin' would be a more accurate description, but most people don't even know that fiat is highly inflationary. But people would understand the connection.
I honestly think it's and easy and nessecary win for us to rename these shitcoins and to talk about them for what they are. Fake ass money
What name do you suggest?
Checkout the book by Patrick Wood 'The New Economics of Technocracy' he makes a compelling case that stablecoins are the technocrats envisioned 'certificate of energy'
I agree they are not stable, fiatcoin, or debtcoin is a good way to think of them.
It is relative to Bitcoin or Ethereum (which was the issue at the time). It's stable but it always goes down overtime stable is just a way of expressing low volatility really. Unfortunately, most people's bills and income are denominated in fiat so it will still have a major utility unless that changes in the future.
Bonds owned domestically are actually better than digital fiat. The way the system works you have more secure ownership of your short term bonds than the fake dollars in your bank account. Those can be tied up in a bank closure, bank bail outs, bank bail ins, etc. If you want the best fiat with the least counter-party risk it's physical cash, bonds are second to that.
I think this is unfortunately one of those circumstances where once a name is in place it's very hard to change it.
All this to say, I agree with your broader point, I'm just not sure anything can be done about that beyond opting out and then doing some of the fun fuck the system stuff I intend to write about here.