A new US Bill is making it harder for Stablecoins

[BrolySSJ 7899]

Stable coins have become quite popular in the crypto world and with each passing day there are more and more companies that are attempting to release stable coins into the crypto market. However, this may soon slow down significantly as the result of a new US bill that has been passed, requiring that all of the stable coins that enter the market, must secure bank charters and must get approval first before they are put into circulation. 

 

The reason for this is that these stable coins are known to pose a risk to fiat currencies in the future, especially as their value is pegged to that of the fiat currency itself, and therefore people may choose to rather invest in the stable coin over the actual fiat currency. Do to this risk and posed threat that the fiat currency is experiencing, the hope is that this wil make stable coins regulated. 

 

However the question now arises of whether or not the stable coin companies will still look to stable coin developments or not? However i do believe that attempts like this to regulate new currencies that are entering het crypto market, may be a double edged sword as the approval factors takes away from the anonymity of crypto that makes it so attractive, but also provides a way for governments to regulate and have more confidence in crypto, increasing het likelihood of its acceptance in the future. What are your thoughts on this? Do you share the thoughts that i have?

 

For more information on this bill, please check out the link below:

https://www.coindesk.com/us-lawmakers-introduce-bill-that-would-require-stablecoin-issuers-to-obtain-bank-charters

[Muhammad Adnan01283 523]

Hey dear @BrolySSJ you gave an information which is very important for beginners in crypto world as far as us bill is concerned, I'm against it because it's going to create difficulties for investors of crypto stable coins.

[Mansoor sumaan 29 0]

Basically I don't think that stabilization of a client is in the hand of the company which has the launched it. Two stabilizer Cayenne company have to pay a lot of amount for its stabilization and company have to face a lot of loss for it. Let me explain with an example the stabilization and ups and downs of a currency is dependent on the market demand and the buyers are seller of the cryptocurrency if there are more sellers than the buyers and the demand of the currency is lower than the price of that currency will go down then the company will have to prepare their own buyers and buy that kind too much that the price does not fall to the down level and the price became stable at that level for this company have to pay a lot of money for it so it is very difficult for a company to stable it. As Bitcoin is a very reliable coin but it also has a raise and falls in the market with the market value.

[Ridam 7455]

Last time EU has already stated that they will regulate the stable coins and the progress is happening but certainly it will take time. They have stated that Earning interest on stable coins won't be considered legal and many more things in the announcement.

And US seems the same to do now. Considering the money coming into the stable coins like Usdt, they must be regulated in my view. Each stable coins must be backed by usd bill and they must be audited but stable coins companies are very bad in showing the reports of their audit which is the main reason government is showing concerns about it.

 

[Bellamy 1065]

Governments will always go against projects that violate their tools of maintaining control and I agree with your analysis that it is not convenient for them to have competition with stablecoins since for security, confidence and operability many investors can migrate their assets to these currencies, leading to the government losing control. In fact, one of the most recent projects such as Facebook's Libra project proposes that the currency will be a stablecoin.

[mahdititus16 216]

i do not think that but i can explain to you how it was just read my comment brother 

to the government losing control. In fact, one of the most recent projects such as Facebook's Libra project proposes that the currency will be a stablecoin.

so that all what i have about your question , good luck .

[Froshk 1828]

The problem with stable coins is that they have some similarities with the fiat currency, and their growth rate isn't that visible, I don't really now what USA have observed that made them to think twice about stable coins but I believe it's a positive position they have taken. 

[Frodler 943]

Could these be the end of the beginning for stable coins in places Like USA, well the Tether is also a stable coin more like the USA dollars would these regulation also affects it? 

[Khan 1414]

12 hours ago, Froshk said:

The problem with stable coins is that they have some similarities with the fiat currency, and their growth rate isn't that visible, I don't really now what USA have observed that made them to think twice about stable coins but I believe it's a positive position they have taken. 

If the crypto coin does not become stable then it will be the end of the user hope and faith they put on crypto. No user can bear the loss all the time when the Crypto dump its prices.

[Syedbesharat 5423]

Governments hae started expanding hands forward crypto and they will accept crypto but the process need time and they will take steps which don't riin their image. They have start somewhere so they pit first hand on fiat competitors stable coin. They will work on them and signify the stable coin echo system and the existence against fiat. Later they will introduce own stable coin for investors to convert slowly fiat into digital assets. Their for it's a good new although the main concept of Satoshi is dieing but crypto is finally gaining interest of world governments. 

[MuhammadSh 3067]

Some governments , banks and even companies trying to plan how they can benefit from these cryptocurrencies projects and they wouldn't accept any cryptocurrency project without any term.. but the good point for this crypto world is when we see news like this so we believe in that this crypto world is affecting directly on the current financial international system and that's why they are trying to put their hands on it but they wouldn't success in my opinion especially because people all around the world believe in this crypto world because of its decentralization..

[Khan 1414]

On 12/4/2020 at 1:31 AM, maxumoto said:

for me I can not put a position, I think we have to analyze the consequences of the policy and how it will continue over time. because we can't do anything.

US is now entering into the Crypto market as the China and the USA is now at a WAR of become Superpower and claims the Super power mean that you can control the other countries.

[scofield64 943]

The new US bill will definitely make things harder for companies who are attempting to create and release stable coin. To secure bank charters and get approval will require some amount of money to be paid. 

[pablomarwan 3082]

Stable cryptocurrencies. Requires government approval in order to launch it on the platform normally. Which increases the risk for its owner. She is already serious because you will not reveal your identity. And also stable. This characteristic is what everyone should be allowed to remain undisclosed. So, one of the problems that some people suffer from was solved through investing in these stable currencies. Which indicates that it will succeed.

[cryptovlek 2597]

I don't use stablecoins, they are not required. Instead exchanges were always offering fiat currencies to trade, so we never needed USDT or dai or anything like that, this is just a product of the markets that found it a good idea but they started backed by USD and since they grown to more than twenty billions it is very unlikely to still be backed. It is a danger if the stablecoins grow more for any sector they are used.

[percare 3192]

I have read that many restrictions will be put to stable coins and probably they will be required to have a bank licence, be fully audited and back their tokens with exact amount of USD deposits, also having to report to several government authorities in the USA and probably Europe will follow with even more strict regulations for stable coins. What is delaying the decision is facebook that also plans to release for a long time the stable coin it created but meets block from regulating bodies. It is not very good idea to hold tether in my opinion.

[alaarami 103]

Thank you, the participation is wonderful and useful, as we have to organize cryptocurrencies in order to increase their culture. We always have to acquire many diverse information and many in order for everyone to benefit, as sharing ideas and information increases experience and obtain the best

[bogdanoff 3173]

I hope this will not be about terminating stable coins because they are helping with trading. Although the issuing and lending of new stable coins without backing and profiting from this activity may be against many laws in every country.

[yonkii 3205]

Tether just reached 24 billion USDT. So, it doesn't matter if we share your thoughts, stable coins keep rising and it is expected they will be at least 100 billion in total by the end of the year. Maybe Tether alone will be there and USDC could even reach 20 billion.