Said no company ever...
Instead they take your money, give you some coin and now have your real money and do shit with it.
And why? Because operating a company costs money and handling money costs money. And greed
I looked into the business of issuing a stable coin back in 2018 and found that the only way to make it work so I could cover the costs of running the business was to invest the fiat into other ventures that could offer yield. At that point though the stable coin isn’t stable.
This would have been significantly harder e.g. in the Eurozone before 2020.
The Wall Street Journal "Cantor Fitzgerald helps manage $39 billion Treasury portfolio that makes up lion’s share of stablecoin’s reserves"
https://archive.md/HL307 (https://www.wsj.com/articles/wall-street-firm-oversees-billi...)
(I am NOT endorsing that company, Tether / Bitfinex, or suggesting that anybody invests in it in any way. Just agreeing that if you have a lot of money, then you might profit from it)
I.e. after 1h the tax is 10% and down to 0 coins left.
Then there is a limit on how much outstanding coins (debt) there can be.
But smaller the profit, smaller the motivation to do it.
Bigger the profit higher the amount of other companies.
Too high of fees and people won't do it. And than upkeep costs also money.
Now you have inflation build in.
This has very little to do with stable :)
Yes sure as a secondary bank account with little usage, sure, but as your primary account? How do you expect your bank to stay around if they don't make money from the basic product they offer? They will try to upsell you, charge hidden fees and reduce interest rates, make risky loans and investments and all sorts of things that aren't aligned with your interests.
And that system is old and grown and fine tuned
> $16b BUSD issued, 3 month tbills ~4.6%, so $713 million run rate divvied up between Paxos and Binance, of which a decent portion probably subsidized user trading fees on the /BUSD pairs
https://twitter.com/BowTiedIguana/status/1625069835645497344
They have less than a billion in cash and the rest is t-bills and Treasury RRP.