The Financial Stability Report Indicates that Stablecoins Poses Potential threat

[wcolins 116]

The U.S Federal System has published its monthly Financial Stability Report which is devoted to the benefits and dangers related to “Worldwide Stablecoins”.

The central bank recognized the different benefits that stablecoins present as an idea. It was expressed that stablecoins are quicker, less expensive and progressively comprehensive payments could supplement the existing payment systems. The announcements were made based on confounded and inadequately available customary budgetary foundations.

Stablecoin activities like Libra, a result of Facebook, can accomplish cross-fringe developments. Sadly, the framework has a few faults. The powerlessness to change over the equivalent to National Currencies and the loss of trust in pegging the steady coins to customary resources are some among them. This will lead a few holders to sell their stablecoins.

 

Source: TheCoinRepublic

[Anonylz 80]

Stablecoin are safe heaven for traders and investors when market is very volatile, many people rely on this coins to keep the value of their investment, if the financial institutions sees this coins as a threat to the payment system means a possible trouble to all stablecoins in the market, i guess many people uses stablecoin than fiat this days, too bad.

[Syedbesharat 5423]

All stable coins consider safe zone or reserved payments which can be cash any time.They can change it to fiat for payment. But Libra coin make very bad impression of  stable coin and make it worse for stable coins .They have to drop the libra project to save some face.

[PiroSense 2681]

29 minutes ago, wcolins said:

It was expressed that stablecoins are quicker, less expensive and progressively comprehensive payments could supplement the existing payment systems.

This was one of the key advantages of stablecoins. It can operate and be an alternative to current payment systems.

 

However, the fact that they are easier to transact with, makes them more prone to be used in illegal activities, given the fact that they operate much like a cryptocurrency is, that is with privacy/anonimity.

 

This is what the feds are somewhat worried of. Privacy/Anonimity is a double-edged sword that can either be used correctly, or not.

[TimopheyKa 3900]

Well, what can be said about this stable coin , and what is its meaning? I do not understand a little, because it in fact should not change in price and somehow move, it will not bring any profit. So there are dollars and euros, they are also particularly in the price does not change? Right? What about this one, well, though , to keep the money it is quite good method, thank you!😀

[setifien 1016]

Stablecoins do not hurt any system (wether the traditional or the new crypto one) because they are supposed to have a fixed value (like 1 Tether = 1 usd ), they are useful for traders to reserve/freeze their funds in a safe zone .

I don't see any threat here 

[AL SHAIMON 1293]

Stable coin is very good for any type of transection. Many traders buy stable coin when btc price down. Then can decrease their lose by this. Stable coin have enough potential. We can use them like fait money.      

[Sumayya 493]

But stables coin are safe, why are they a threat, they saves investment for traders or investors thinking the market will go down

[Thekingcallme 1975]

I don't think they pose any threat. They are the best currencies that traders use in order to preserve the value of their money from losses in the volatility of the cryptocurrency market.

[Afrizal rahman 2636]

I think stablecoins are good for investors of fixed prices. U.S. may refuse because it seems afraid that will have an impact on the economy. but I feel that StableCoin is a safe place for investment users

[BTC Future 3946]

This instructions concern Libra mostly as it was the main news lately. These regulator either never heard of Tether or think of it as a scam that claims to be backed by the US dollar, but in fact is acting shady senting the money from bank to bank and releasing evidence of it's own.

[Sabba092 115]

On 11/18/2019 at 7:03 PM, TimopheyKa said:

Well, what can be said about this stable coin , and what is its meaning? I do not understand a little, because it in fact should not change in price and somehow move, it will not bring any profit. So there are dollars and euros, they are also particularly in the price does not change? Right? What about this one, well, though , to keep the money it is quite good method, thank you!😀

guys I am slot rhi so long thinking that these stable coins are the big threat for the crypt as these can get more and more assets and volume on daily basis.

[McCree 713]

Basically, the summary of the report is saying "We think that stable currencies that are not pegged to our fiat money is a threat". I understand that they need to control some harmful transactions to prevent them from being processed but threatening stablecoins isn't exactly the correct way to proceed about this situation.

[AL SHAIMON 1293]

16 hours ago, Nehak said:

You are right as those coins are good enough to return some profit on the investment and if we invest in it now then there is a chance of good profit margin in return.

yeah, this is called long term investment. we should invest in good coins and hold them as long as we can. if we do that we will get enough profit in the future.

[bliznec 22267]

A financial stability report shows what brings the result of using crypto to the real world. Of course, this can be a threat, and more. 

[babaji 1228]

Stable coin is a definite thread but not to crypto but rather to USD or major currencies in the world. The problem however is the issuer. National fiat currencies are issued by govt, which is duly elected by the people of that country, while stablecoins specially Libra, is issued by an individual or an institution, and if that is not stopped, it can destroy world economy, and make it favourable for one person or organisation.

[Muskan7816 175]

I hardly agree with the coins that indicate financial stability, because when financial stability declines, our economic plight goes up so we always have this issue.

[Mom0 222]

After knowing about the cryptocurrencies and still trusting only the top coins like Bitcoin ethereum litecoin etc and I don't even invest in other coins so I will suggest you not to go for this at least not without knowing about them deeply

[bentayebsalah 2280]

I think Stablecoins are good for all traders and investors in cryptocurrencies and all their cryptocurrencies are converted to those stable currencies in order to keep their profits

[Amirul Islam 382]

On 11/18/2019 at 6:23 PM, wcolins said:

The U.S Federal System has published its monthly Financial Stability Report which is devoted to the benefits and dangers related to “Worldwide Stablecoins”.

The central bank recognized the different benefits that stablecoins present as an idea. It was expressed that stablecoins are quicker, less expensive and progressively comprehensive payments could supplement the existing payment systems. The announcements were made based on confounded and inadequately available customary budgetary foundations.

Stablecoin activities like Libra, a result of Facebook, can accomplish cross-fringe developments. Sadly, the framework has a few faults. The powerlessness to change over the equivalent to National Currencies and the loss of trust in pegging the steady coins to customary resources are some among them. This will lead a few holders to sell their stablecoins.

 

Source: TheCoinRepublic

In the market there are many stable coins liste. USDT is most popular stable coin in the market. Maximum exchanger have this pair for trading. But sometime we saw some up and down movement on this coin because of manipulation.

[Captain Karim 0]

Facebook Libra coin hasn't seen the light yet, I think this project is being fought by many countries because Facebook has a broad popular base, it has more than one billion users and this poses a threat to banks and some governments of countries.

[Shaza Ahmad 1682]

A lot of Bitcoin options exchange platforms appeared and closed in a short time after it defrauded and stole people's money, what makes the platform you are talking about different from them? Where will the money come from when the majority of traders win?

[Dark_Sky 8489]

On 11/18/2019 at 8:50 PM, Syedbesharat said:

All stable coins consider safe zone or reserved payments which can be cash any time.They can change it to fiat for payment. But Libra coin make very bad impression of  stable coin and make it worse for stable coins .They have to drop the libra project to save some face.

That's right. 

All stable coins can convert to cash at any moment. 

I don't support Libra due to some problem that it can cause especially in stable coins. 

[tienda 8776]

I think today USD has many competitor if before battle with Bitcoin, but now with the creation of Stable coins, there are many who exchange their Bitcoin to the Stable coins and then exchange them to local currency.

[Dmasked 1840]

For me the volatility of the crypto currencies is their best aspect. Sure we need some stablecoins to safeguard and store our profits or funds but in long run stablecoins will just be like any other fiat currency and in crypto world it doesnot hold much significance. Price stability will mean less trading volume so there will always be an mismatch between the buying orders or the selling orders. USA seems too against the launch of LIBRA maybe because they think its a trojan horse to monopolize on crypto market by a giant company like facebook.