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0 sats \ 1 reply \ @didiplaywell OP 22h \ parent \ on: Is it possible to develop a Stablecoin with Cashu? bitcoin
Thank you both @96c0b276a3 and @telcobert for your observations.
@telcobert would you mind to elaborate on the 'issuer risk' detail?
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0 sats \ 0 replies \ @telcobert 4h
They are both 'credit risks'.
Counterparty risk refers to the other party of a contract (e.g. delivery of rice or oil), Issuer risk to the issuer of a financial instrument (e.g. bond or bill of exchange).
Counterparty risk is significantly greater in terms of complexity, volatility, and contagion.
– Bitcoin M0 (commodity money) has none of these two risks (there are others). – Contract parties paying with eCash settles C/P risk (Cashu and Fedimint can do) – Issuer risk (slow/fast rug) must be eliminated on the mint level (needs Bitcredit Protocol).
More about this in a few weeks. Stay tuned.
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