Karsa, a YC W25 startup, launched a platform for buying and saving stablecoins internationally. It aims to provide an easier way for people in emerging markets to access and hold USD-pegged stablecoins as a hedge against local currency volatility and inflation. The platform allows users to purchase stablecoins directly with their local currency through various payment methods, and then earn interest on their holdings. Karsa emphasizes a simple and accessible user experience, designed specifically for individuals in these markets who may be less familiar with cryptocurrencies.
KrebsOnSecurity reports on a scheme where sanctioned Russian banks are using cryptocurrency to access the international financial system. These banks partner with over-the-counter (OTC) cryptocurrency desks, which facilitate large transactions outside of traditional exchanges. Russian businesses deposit rubles into the sanctioned banks, which are then used to purchase cryptocurrency from the OTC desks. These desks, often operating in countries with lax regulations, then sell the cryptocurrency on international exchanges for foreign currencies like dollars and euros. Finally, the foreign currency is transferred back to accounts controlled by the Russian businesses, effectively circumventing sanctions. The process involves layers of obfuscation and shell companies to hide the true beneficiaries.
HN commenters discuss the complexities of Russia's relationship with cryptocurrency, particularly given sanctions. Some highlight the irony of Russia seemingly embracing crypto after initially condemning it, attributing this shift to the need to circumvent sanctions. Others delve into the technicalities of moving money through crypto, emphasizing the role of over-the-counter (OTC) desks and the difficulty of truly anonymizing transactions. Several express skepticism about the article's claims of widespread crypto usage in Russia, citing the limited liquidity of ruble-crypto pairs and suggesting alternative methods, like hawala networks, might be more prevalent. There's debate about the effectiveness of sanctions and the extent to which crypto actually helps Russia evade them. Finally, some comments point out the inherent risks for individuals using crypto in such a volatile and heavily monitored environment.
Summary of Comments ( 72 )
https://news.ycombinator.com/item?id=42879661
Several commenters on Hacker News expressed skepticism about the need for Karsa, questioning whether the problem it solves is significant enough, especially given existing solutions like Wise and Revolut. Some doubted the claim of cheaper and faster transfers, citing personal experience with these alternatives. Others questioned the regulatory landscape and potential legal hurdles for operating in multiple jurisdictions. A few commenters requested clarification on Karsa's specific advantages, particularly concerning fees and exchange rates, while some expressed interest in using the service for specific use cases like paying international employees. Overall, the comments reflected a cautious but curious attitude towards Karsa, with many seeking more information to assess its true value proposition.
The Hacker News post titled "Launch HN: Karsa (YC W25) – Buy and save stablecoins internationally" has generated a moderate number of comments, mostly focusing on the practical implications and potential use cases of the service, as well as some skepticism about its regulatory landscape and target audience.
Several commenters questioned the need for such a service, pointing out existing solutions like Wise (formerly TransferWise) and questioning the actual cost savings offered by Karsa. They argued that while Karsa might simplify the process of acquiring stablecoins, the underlying transfer fees and exchange rates might not be significantly different from existing methods. One commenter highlighted the difficulty of competing with established remittance services, especially given their extensive network and regulatory compliance.
Another thread of discussion revolved around the target demographic for Karsa. Some commenters suggested that the primary beneficiaries would be individuals in countries with volatile currencies or limited access to traditional banking services. They envisioned scenarios where people could preserve their savings by converting local currency to stablecoins, effectively hedging against inflation and economic instability. However, other commenters countered this argument, noting the technical hurdles and potential risks involved in using stablecoins, especially for populations with limited financial literacy.
Regulatory concerns were also raised. Commenters pointed out the complex and evolving regulatory landscape surrounding stablecoins and cross-border money transfers, expressing skepticism about Karsa's ability to navigate these challenges effectively. One commenter specifically mentioned the potential for regulatory scrutiny and the difficulty of obtaining necessary licenses in multiple jurisdictions.
A few commenters expressed interest in the technical implementation of Karsa, inquiring about the specific stablecoins supported, the underlying blockchain technology used, and the security measures in place. However, these comments were relatively few compared to the discussions about the practical utility and regulatory aspects of the service.
Overall, the comments section reflects a mixed reception to Karsa. While some users acknowledged the potential benefits of the service, particularly for individuals in specific economic circumstances, others expressed skepticism about its cost-effectiveness, target audience, and ability to navigate the complex regulatory landscape. The discussion highlights the ongoing debate surrounding the practical applications and challenges of stablecoins in the context of international finance.