WARNING: Stablecoins Are Less Secure Than Money In Your Bank Account.
US just seized $1 billion in stablecoins. Treasury Secretary Bessent confirmed it yesterday. His words : “We Grabbed Iranian wallets”
What likely happened in reality:
- Now, if you think there was some kind of careful judicial process to locate IRGC wallets and ban just them that is very unlikely.
- The freezes likely happen via AI and it won't selectively just freeze IRGC accounts or government entities. Such AI system would be to identify and flag anyone it believes to be Iranian.
- If AI knows the address of some Iranian exchange or anyone one for that matter they feel to be affiliated with the government anyone transacting with that entity is a target. And so are the entities transacting with those entities. Imagine the map here.
That's how sanctions work in practice. It’s an algorithm that is broad, automated and error-prone.
Here is what you should learn from it!
- stablecoins have ZERO privacy in their current form. anyone you transact with know everything about your past and future transaction history.
- stablecoins can be easily confiscated even in non-custodial wallet! Infact confiscating your bank balance is much more harder.
- stablecoins are not a type of currency you should be looking for if you need resilience.
- stablecoins are usable for payments not for storing long term savings. You get it in when needed and get out after your task accomplished.
If you’ looking for resilience, privacy and sovereignty become key factors
- Privacy can be provide only by privacy preserving cryptos like Zcash or
Monero.
- if you’re a Bitcoin holder to maintain privacy your should never touch KYCed platforms. If you need make a habit of swapping into XMR/ZEC before touching any platforms that know your identity. This will keep you primarily wallets unlinkable to your identity.
- if you receive stablecoins and need assurance that these balances are never confiscated, convert them to XMR or ZEC. Then you can gradually convert them to BTC if you’re looking to minimize volatility.
Unstoppable wallet has everything necessary for someone to stay resilient:
- store privacy coins
- swap to/from privacy coins
- no KYC swaps
- no meta data leakage on swaps
- no data collection
Aside from this confirming that the US is a global gangster, haven’t crypto freaks been telling us for ages that cryptos are beyond the reach of government?