I am surprised this is legal because I thought currency was property of the state. For example melting low value coins for their metal used to be illegal. I know that damaged currency can be traded for new currency at the appropriate banks.
I get it is art, and I dislike it :)
scyclow•4mo ago
It's a federal crime a federal crime pursuant to United States Code Title 18 (CRIMES AND CRIMINAL PROCEDURE), Part I (CRIMES), Chapter 17 (COINS AND CURRENCY), Sec. 333 (Mutilation of national bank obligations):
Whoever mutilates, cuts, defaces, disfigures, or perforates, or unites or cements together, or does any other thing to any bank bill, draft, note, or other evidence of debt issued by any national banking association, or Federal Reserve bank, or the Federal Reserve System, with intent to render such bank bill, draft, note, or other evidence of debt unfit to be reissued, shall be fined under this title or imprisoned not more than six months, or both.
_jsmh•4mo ago
An unusual property of this mechanism of creating a stablecoin is that the bank no longer holds the funds that back the stablecoin. There's no possibility of the bank locking up the funds of a company that issued a stablecoin.
It's the burn and mint used in Luna Classic, now in physical form.
grafmax•4mo ago
I understand the conversion from dollars to coin. What about coin to dollars? There’s a floor but no ceiling, so I don’t see how this is a real peg.
etskinner•4mo ago
They address this on the site:
>bUSD is not a stablecoin. It can never be redeemed for USD, and may trade at values other than $1 for extended periods of time.
scyclow•4mo ago
Frankly, this is better than a stablecoin since the value is locked on the blockchain forever no matter what.
ptsneves•4mo ago
I get it is art, and I dislike it :)
scyclow•4mo ago
Whoever mutilates, cuts, defaces, disfigures, or perforates, or unites or cements together, or does any other thing to any bank bill, draft, note, or other evidence of debt issued by any national banking association, or Federal Reserve bank, or the Federal Reserve System, with intent to render such bank bill, draft, note, or other evidence of debt unfit to be reissued, shall be fined under this title or imprisoned not more than six months, or both.