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Comment by CaptainZapp | Hacker News Reader

Why exactly shall I hold my USD funds in USDC instead of just, you know, US Dollars?

That just doesn't make any damn sense, whatsoever.

For example, USD 10,000 is the absolute maximum you can bring into or take out of the US, or move between accounts in the US, without intrusive and possibly annoying declarations of source of funds, and potential exposure to instant civil forfeiture if you are deemed suspicious [0].

Stablecoins may not be practically subject to these restrictions (they may have other very serious risks and limitations, but not the same ones as USD).

So choose whatever currency is best for you. Isn't it nice to have a choice?

[0]https://news.ycombinator.com/item?id=22489103

> Stablecoins may not be practically subject to these restrictions

Presumably they are subject to these restrictions in law, it's just that right now they fly under the radar.

So ... you're advising people that stablecoins are a good way to break the law?

They may make certain unjust laws, such as arbitrary civil forfeiture, impossible to enforce.

So ... you're in favor of innocent people having their money confiscated on the spot without due process?

No, but I'm quite fond of the proceeds of crime being recovered, so I don't think making such things impossible to enforce is a positive, no.

So regulatory arbitrage? I don’t think law enforcement will see things that way.

OP asked for any reason to hold funds in USDC instead of USD, because they firmly believed there was no reason. I suggested one reason.

Your imagination beyond that is up to you.

Reply on news.ycombinator.com