This product offering is great for attention and early (vanity) volume growth, but it's incredibly naive and a mistake we see many companies make. Erebor is just the highest profile example lately.
There *is* a way to offer 1:1 UX to your users in a cost effective way. But it doesn't involve assuming an effective forex market trades at par. The way to figure it out is to flow a couple $ billion across this pair and optimize the hell out of those flows.
If this is something you want to offer, talk to @eco.
Erebor Bank attracted crypto clients this year with a pitch -- the bank would convert their Circle and Tether stablecoins to cash for free.
Sophisticated crypto trading firms quickly figured out a way to make an easy profit out of the offer -- at a cost to Erebor.
Story with @MichaelRoddan
theinformation.com/articles/… 1/
We simply need the freedom to do so.
It's disingenuous to have the CLARITY Act, which is vital for market innovation and consumer protection, repeatedly stall over banking lobby points, while banks race to adopt the technology at the same time.
Back to work. Thanks for reading
Finally, in spite of all the frustration above, I *want* to work with the banks on this technology, because this technology makes money work better for them and their customers.
Where big banks are routinely fined $ billions for breaking consumer protection laws, anti-money laundering laws, privacy laws — yet allowed to remain in business, with government backing, shielded from class action liability.
Where my ability to transfer large sums of money is limited to certain days and hours, with an artificially high "convenience fee"...
Where I'm forced to artificially separate my spending, saving, and p2p balances at the expense of earning interest on all my cash...
Where big banks maintain such a competitive advantage that they can get away with paying zero interest...
It's time to stop confusing "consumer protection" with "banking industry protection."
We need to end up with something better than the current status quo...
Every month, right now every week, we read a new headline about the banking industry building blockchains, launching stables, adopting this technology.
They've bought themselves the time. Now we need to regulate the boundaries, and let the competition play out in-bounds.
Stablecoins are just a better way to move money. Banks will adopt them to improve their services and their business—from the incredibly powerful pole position of already hosting most consumer primary accounts.
They are among the best positioned to benefit here.
Yes, stablecoins are potentially a competitive threat to banks, big and small. They're also potentially a competitive threat to a host of traditional finance market actors.
This is evolution, it's inevitable, and we should embrace it.
But I thought stablecoins were the problem?
I'm going to say this again: The biggest threat to community banking, is the big banks. It's incredibly rich that the bank lobby continues to play this both ways.
More thoughts below if interested🧵
I'm not quite as spicy as @0xMarcB this morning but getting there.
reuters.com/business/finance…
Every startup needs the person who just sends it. Takes full advantage of the trust to go be 20% wrong. No ego, full charisma, going to keep taking swings.
There's getting $#!t done, and there's making things happen. Invaluable when someone can do both.
Think about Eco's routing+pricing engines like an LLM, reasoning across chains and markets in real-time. Then think about the combination of our routing SDK/MCP (👀) and our partners' offchain policy engine as the harness.
Together, these enable developers and institutional traders and money movers to navigate onchain markets like never before.
In this analogy, stablecoins are the tokens, but also the compute. More to come on this last part.
Common @eco FAQ: Is Eco a stablecoin clearinghouse?
Answer: No. We enable programmatic onchain routing in/out/thru stables, with JIT liquidity. Clearing is basically a netting algo. You could (and should) use Eco to power the onchain leg of a clearing flow, but that's only one use case for our platform.
gm. Within 2-3y someone will try to include right to advertise in new auto lease terms, and/or owners will be sold some sort of content subscription plan designed for their cars only.
k, back to stablecoins. and analog things otherwise.
