That’s entirely dependent on the how the banks are setup, which are usually slow (hours to days settlement), and closed after certain hours/holidays (tomorrow for example) Certain blockchain networks are fast (ms) and cheap, getting asymptotically closer to HFT fiber and circuit performance.

I can send you £1000 anytime of day and day of the year. So what use is it? Come to the UK and EU this stuff is solved.

Fast payments aren’t hard when operating only within a narrow corresponding bank network (ask any HFT firm) US has RTP, Brazil has PIX, EU has instant SEPA, UK has Faster Payment, etc Now make it so any of those can send any asset with any size to Singapore and settle in 400ms with sub-penny fees.

But why would a bank want a transparent ledger of all its transactions ?

In the long run all that matters is what users want, banks can either build that UX or not. But I agree privacy tools need to be built otherwise we are cooked. There was lots of work being done there until the Tornado Cash devs got arrested, putting a chilling effect on major privacy advancements.

Me and everyone already I know have banking apps that work fine.

I’m jealous, what apps do you use?

Have you thought considered that we have significant consumer protections with Banks, such as the ability to reverse a transfer. You have not sold stablecoins as an individual, organisational or state level. Likely because you’re financially invested in being correct.

That’s awesome! Out of curiosity, how many EU (or even US) bank failures have there been, both in aggregate and per capita, since 2018? And how many NYDFS regulated stablecoin failures by comparison? I don’t need to sell anything, the systems compare themselves.

If the system only works well within a certain jurisdiction, then it’s conveniently better than not having it at all, but it’s simply not as good as a global state machine.

I mean, you can as long as you don't want them to be able to spend it anywhere.

Otherwise, just use normal electronic transfer which clears almost instantly in practice anyway.

Anyone who had counterparty settlement risk with Lehman might feel differently about “almost instantly”

I have counterparty risk with almost every business I transact with.

Trading desk call at 3:29pm on a Friday. Offered trade: $100m long bonds. They’re distressed and need cash, and you’ll make money, if the trade settles. Oops it’s 2008, and the counterparty was Lehman. After the weekend, they’re bankrupt, you’re now an unsecured creditor. Stablecoins fix this.

Oops there a global bank run with no lender of last resort.

Banks will always inherently be susceptible to bank runs or bank walks. Only thing the banks can do in that regard is become more antifragile to runs or more competitive to disincentivize them, but all of that is different from counterparty settlement risk.

What happens if there a run on Stablecoins whose the lender of last resort ? It’s disaster, isn’t it ?

Why is it bad other than the issuer loses that business? For example PayPal’s stablecoin, PyUSD. What happens if everyone redeems out of PyUSD? Just means no one wants to use it. Paypal then earns no interest from stablecoin reserves and continues to offer traditional rails.