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@ pam
2025-02-01 09:41:34
*(This is not a feasibility analysis, but rather a perspective on the philosophical alignment with Bitcoin’s vision)*
The moment stablecoins or national currencies start playing a role in Bitcoin LN, Bitcoin’s position as a purely decentralized medium of exchange will be undermined.
The idea of a Bitcoin-native global currency and global economy, where people and businesses transact in Bitcoin directly, would align with its original purpose.
If Bitcoin is to function as a true currency, a larger global adoption that bypasses traditional financial systems, will make these on/off ramps for stablecoins unnecessary.
At some point, there will be those who will want to preserve Bitcoin’s purity as a currency, and others who want to see store value, ETF, stablecoin collabs, tokens, pump & dump, NFTs, and centralized influenced approaches.
Currency domination, especially by the USD, has contributed to poverty in the Global South by deepening economic inequality and exacerbating debt burdens. During the Tequila Crisis and the Asian Financial Crisis, Mexico and Asia’s high dependency on the USD led to rapid currency devaluations and debt defaults. Every time the US hikes interest rates, it triggers capital flight from developing nations, causing currency drops and further economic hardship, and this isn’t just a thing of the past; it has been a pressing issue in the last two years, widening the poverty gap in the Global South. And, as always, it’s the poor who suffer the most.
USDT is just another name for currency domination through blockchain. Its pegged to USD and on Bitcoin LN, it will piggyback on Bitcoin’s perks (as a medium of exchange to Bitcoin's current and potential adopters) with a high likelihood of keeping users transacting in USD rather than Bitcoin itself. This could also lead to global assumptions that Bitcoin is taking sides, especially in today’s fragile and invisible global currency war. To counter, people will say ‘let all stablecoins pegged to any currencies come on board’ - but what’s the point of Bitcoin then?
It’s like bringing the very systems Bitcoin was created to challenge, back into the fold. I believe when you use stablecoins this way, you’re essentially importing the power dynamics and dependencies of the traditional financial system, which seems counterproductive to Bitcoin's decentralized ethos.
Bitcoin’s true potential is its ability to provide an alternative to centralized, government-controlled currencies and financial systems. We should stick to the original game plan.