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USDC and USDT can freeze your assets too

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by COINS NEWS 92 Views

I saw that you guys were worried about the recent post that PayPal has the ability to freeze their new stablecoin.

However, both USDT and USDC can do the same. Circle (the issuer of USDC) and Tether possess the power to freeze assets held within their respective stablecoins.

There is a potential danger for those who possess USDC or USDT, as the possibility of the issuer suspending their assets exists. I think this power is held to fight against individuals who are suspected of fraudulent activities or find themselves caught in a criminal inquiry.

This centralized power could potentially be abused and erodes the trust people place in stablecoins.

I read somewhere that decentralized stablecoins also exist but I don't think that they're mainstream enough to be used and no one wants to get rugged by a stablecoin lol.

What are your thoughts on this? I'm gonna stick to good ol' USDT

submitted by /u/Rapid_GT
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