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Ethereum Co-founder says USDC is a significant decider in the future of contentious ETH hard forks’


Ethereum co-founder, Vitalik Buterin said that centralized stablecoins  like USDC may become “ a significant decision in future contentious hard forks. Among that, he also mention Tether (USDT)

Buterin’s argument held firm in that the centralized stable coins could be a significant decider of which blockchain protocol the industry would “Respect” in hard forks. He issued these claims at the BUILDL Asia conference in Seoul, South Korea, this Wednesday. Alongside him to discuss the Merge project was Polosukhin, co-founder of Near Protocol. 

“At the moment of the merge, you will have two [separate] networks […] and then you have exchanges, you have Oracle providers, you have stablecoin providers that are kind of deciding in a way, which one they respect.”

“Because at that point, you’ll have 100 billion of USDT on one chain and 100 billion of USDT on the other chain, cryptographically — and so, they [Tether] need to stop respecting one of them,” explained Buterin.

Buterun also stated that he had not seen any indication of the same kind of contention being a problem post Merge. Hard forks, he claimed, were going to be affected by the centralized stablecoin more severely than Ethereum after the Merge. 

“I think in the further future, that definitely becomes more of a concern. Basically, the fact that USDC’s decision of which chain to consider as Ethereum could become a significant decider in future contentious hard forks.”

“At that point, maybe the Ethereum foundation will be weaker, maybe the ETH 2 client teams will have more power, and maybe someone like Coinbase, would both run a stablecoin and have bought up one of the client teams by then […] like lots of those kinds of things could happen,” he said.

While recognizing that farther down the line, Ethereum’s hard fork upgrades will lead it to the same issues, he also described a potential cure for centralized actors in his proposal of offering different kinds of stablecoins.

“The best answer I can come up with is to encourage the adoption of more kinds of stablecoins. Basically, you know, people could use USDC, but then they could also use DAI and like, at this point, I mean, like DAI has taken this kind of very decisive route of saying ‘we’re not going to be purely crypto economic we’re going to be a wrapper for a whole bunch of real world assets.’”

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