Your point has nothing to do with fiat.
replyIt applies equally well to a fiduciary coin with a promise that 1 gcoin = 1g of gold or whatever.
Indeed.
replyHowever, it does not necessarily apply to algorithmic stable coins (Terra) or crypto-backed overcollateralised coins (DAI). That's why I said "fiat-backed".
Why couldn't a privacy focus coined, like Monero, be a stablecoin?
replyYou don't need to see where the coins are and move to promise $1 of going for every coin.
Probably the founders/employees of the company issuing/redeeming the token would be arrested very quickly. Tornado Cash people got arrested for much less.
replyHow are you guaranteeing that your private stablecoin will keep its $1 value?
replyHow are you bootstrapping a network to validate private transactions without the promise of potential gains in coin value as its popularity takes off?
Who makes that promise? That's who you are ultimately trusting.
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