Digital gold can't work, here's why.

in sec •  2 years ago 

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Recent events demonstrate why digital gold won't work:

The SEC is prosecuting Paxos for issuing stablecoins as BUSD. Paxos was licensed and regulated in New York under its BitLicense.

1: If regulated digital dollars aren't safe, who would trust gold?

2: Paxos' BUSD reserves are held in cash and Treasuries, so they are easy to redeem in a panic. Gold in a vault is much slower to convert to cash, so panic redemptions could depeg it and collapse the price.

sec paxos busd binance digital gold
2 years ago by

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