We are increasing the USDC debt ceiling considerably, action that has been heavily supported by the community to take the PEG back to 1. This said, we are aware of risks this type of collateral brings to the platform.
USDC legal compliance states:
Without limiting the foregoing, you may not use the USDC Services if (i) you are a resident, national or agent of Cuba, North Korea, Sudan, Syria or any other country to which the United States embargoes goods (“Restricted Territories”)
Being Cuban myself, I’ve suffered all kind of “special measures” whenever I want to register in any American site. I don’t live in the island since many years ago, even though I am continuously annoyed by any American service I want to be part in, I should count the story of my life and demonstrate that I’m a resident now of an European country (a very painful process, including sending all kind of documentations to demonstrate that I’m not longer in the island). What I mean with all this is: USA really takes measures against any company which breaks their embargo rules, and they had extended these to companies outside of their country (ie. European banks which have collaborated in some moment with the island).
Some time before, a good friend of mine contacted me, with the idea of provide my team to support the development of a Crypto coin which could be used by Cubans to receive remittances, to store value (since the Cubans Pesos have value nowhere else), and to handle digital exchange in the island (yes there doesn’t exist internet payments, VISA and Mastercards doesn’t operate in the Island at all for instance, it is a country “frozen” in the time, those old cars you have seen driving in Havana talk by themselves about how frozen is the country in the time). At this moment due to the global pandemic in fact the situation in the island is worst than before. I’ve really thought in cooperating to build software through my company (a Software House), and use DAI as the mean to help in the Cuban situation.
This said, I’m a member of MakerDAO, and MKR holder myself, and I’m worried that the usage of DAI in the island could really alarm the USA government and happen what we in fact see like very low probability (since DAI usage has really the potential to grow a lot there, and this one is backed so largely by USDC, this means that “indirectly” Cubans would be using USDC)
Am I being too pessimistic in this regard? Which is the stand of MakerDAO community in front of USA Embargo against countries (including their citizen) like Cuba, and us Cubans which suffer the “bad luck” of have been born in a communist country? Which is the position of the community to support the usage of DAI in Cuba even at the expense of increasing the possibility to have USDC Vaults blocked and who knows which other actions could be taken by the USA government?
Really open to the discussion, thoughts and ideas in this regard.