I think it makes sense because there is no settlement time with crypto but I think it could when they do withdraw from the system. So in a way, they can have the funds available quite fast. However, I don't know if I like them creating their own closed off code and creating systems that we can't see into. They can do some shady stuff when that happens.
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Yes there will need to be something that prevents spikes and dips but you could probably build it into the code. It will be interesting to see how they peg the value to ever changing fiat fluctuations