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A new US Bill is making it harder for Stablecoins

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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

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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.

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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.

 

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NOTHING I SAY IS FINANCIAL ADVICE. YOU SHOULD USE YOUR MIND ,FOR YOUR MONEY,

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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.

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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 .

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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. 

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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? 

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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.


Youtube ChannelSocial media Assets, Websites and Plugins are available in a very reasonable price 😇 TALK Token is also acceptable.

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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. 

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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..

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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.

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Youtube ChannelSocial media Assets, Websites and Plugins are available in a very reasonable price 😇 TALK Token is also acceptable.

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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. 

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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.

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Учитесь, учитесь и учитесь на своих ошибках :classic_smile:

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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.

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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.

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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

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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.

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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. 

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The bulls on the pair took advantage of the dollar's overbought condition to return it to the lower boundary of the medium-term corridor of 1.2500-1.2800 in which it had been moving since the end of November last year. However, they did not have enough strength to consolidate within the corridor. The two-week maximum was recorded at 1.2540, after which, pushed by US PCE, the pair went down again and ended the five-day period at 1.2492.   According to specialists from United Overseas Bank, as long as the support at 1.2420 is not broken, there is still a possibility of the pound breaking through the 1.2530 mark. The next resistance, according to them, is at 1.2580. The median forecast of analysts regarding the behaviour of GBP/USD in the near future looks maximally uncertain: 20% voted for the movement of the pair to the south, the same amount – to the north, and the majority (60%) simply shrugged their shoulders. As for technical analysis, the trend indicators on D1 point south 65% and 35% look north. Among the oscillators, the picture is mixed: 25% recommend selling, 25% – buying, and 50% are in the neutral zone. In case of further decline of the pair, it will encounter support levels and zones at 1.2450, 1.2400-1.2420, 1.2300-1.2330, 1.2185-1.2210, 1.2110, 1.2035-1.2070, 1.1960, and 1.1840. In case of growth, the pair will encounter resistance at levels 1.2530-1.2540, 1.2575-1.2610, 1.2695-1.2710, 1.2755-1.2775, 1.2800-1.2820, 1.2885-1.2900.   No significant statistics on the state of the UK economy are planned for the week.   USD/JPY: Reached the Moon, Next Target – Mars?     We called the previous review "Higher and Higher". Now, it is worth asking at what altitude will this flight into space end? When will the Bank of Japan (BoJ) finally decide on a radical change in its monetary policy?   At the meeting on April 26, the members of the Japanese Central Bank unanimously decided to keep the key interest rate at the previous level of 0.0-0.1%. Moreover, the regulator removed from the statement the reference that it is currently buying JGB bonds for about 6 trillion yen per month. The statement after the meeting states that "the prospects for the development of the economy and prices in Japan are extremely uncertain," "if inflation rises, the Bank of Japan will likely change the degree of easing of monetary policy," however, "it is expected that the eased monetary policy will be maintained for some time."   The market predictably reacted to such decisions of the Japanese Central Bank with another Japanese candle on the chart of the USD/JPY pair. The maximum was recorded at 158.35, which corresponds to the peak values of 1990. There were no currency interventions to save the national currency, which many market participants feared. Recall that strategists from the Dutch Rabobank called the level of 155.00 critical for the start of such interventions by the Ministry of Finance of Japan. The same mark was called by 16 out of 21 economists surveyed by Reuters. The rest predicted such actions at levels of 156.00 (2 respondents), 157.00 (1), and 158.00 (2). USD/JPY has long exceeded the levels at which the intervention took place in October 2022 and where the market turned around about a year later. It now seems that 158.00 is not the limit. Perhaps it is worth raising the forecast bar to 160.00? Or immediately to 200.00?   USD/JPY ended the past week at 158.32. The forecast of analysts regarding the near future of the pair looks as follows: fear of currency interventions still prevails over 60% of them, while the remaining 40% are waiting for the continuation of the flight to Mars. Technical analysis tools clearly have no concerns about interventions. Therefore, all 100% of trend indicators and oscillators on D1 point north, although a third of the latter are in the overbought zone. The nearest support level is located in the area of 156.25, then 153.90-154.30, 153.10, 151.00, 149.70-150.00, 148.40, 147.30-147.60, 146.50. And it is practically impossible to determine resistance levels. We only note the reversal maximum of April 1990, 160.30, although this target is quite conditional.   No significant events regarding the state of the Japanese economy are expected in the coming week. Moreover, traders should keep in mind that Monday and Friday in Japan are holidays: April 29, the country celebrates the birthday of Hirohito (Emperor Showa), May 3 – Constitution Day.   CRYPTOCURRENCIES: Where Will Bitcoin Fall?   As expected, the fourth halving took place in the bitcoin network at block #840000 on April 20. The reward for finding a block was reduced from 6.25 BTC to 3.125 BTC. Recall that halving is a halving of the reward size for miners for adding a new block to the bitcoin blockchain. This event is embedded in the code of the first cryptocurrency and occurs every 210,000 blocks – until the moment when the mining of 21 million coins (presumably in 2040) ends the emission of cryptocurrency. It should be noted that the fourth halving will provide for the mining of approximately 95% of the entire bitcoin emission, about 99% of all coins will be mined by 2033-2036. Then, the emission will gradually move towards zero.   In the previous review, we promised to tell how the market would react to this important event. We promised – we report: the market reaction is close to zero. For several days after the halving, there was no growth in volatility. The price of bitcoin slowly and lazily moved first upward, reaching $67,269 on April 23, and then returned to where it began its weekly journey: to the $64,000 zone. It seems that market participants froze in anticipation of who would be the first to start buying or, conversely, selling the main cryptocurrency massively.   According to experts from Bitfinex, the post-halving supply restriction stabilizes the price of the first cryptocurrency and may contribute to its growth. "The reduction in the pace of bitcoin issuance after halving, which will amount to $30-40 million per day, contrasts sharply with the daily net inflow of $150 million into spot ETFs. This emphasizes a significant demand and supply imbalance, which may contribute to further price growth," stated the Bitfinex report.   However, analysts from QCP Capital believe that bitcoin optimists will have to wait at least two months before assessing the effect of the past fourth halving. "The spot price grew exponentially only 50-100 days after each of the three previous halvings. If this pattern repeats this time, bitcoin bulls still have weeks to create a larger long position," their report stated.   Anthony Pompliano, the founder of the venture company Pomp Investments, believes that within 12-18 months, the coin is expected to grow to $100,000, with chances of reaching $150,000-200,000. However, before moving to a bull rally, BTC/USD, in his opinion, is waiting for a correction down. At the same time, Pompliano believes that the price will not fall below $50,000. "I think we have already crossed this Rubicon," – he wrote.   The possible upcoming decline of the main cryptocurrency is probably a topic currently much more discussed than its subsequent growth. Many agree that bitcoin coins will appreciate in the long term. But how will quotes behave in the more foreseeable future? Fidelity Digital Assets, the leading issuer of one of the spot BTC ETFs, has already revised its medium-term forecast for bitcoin from positive to neutral. The reason for abandoning optimistic sentiments is several worrying trends in the crypto market. Fidelity analysts noted the growing interest in selling from long-term hodlers. Among them, there is currently a large percentage of profitable addresses, as noted in the company's report. This means that holders may want to lock in profits and start selling BTC. On the other hand, on-chain data indicates that small investors, on the contrary, continue to accumulate the first cryptocurrency. Since the beginning of the year, the number of addresses on which BTC is stored for at least $1,000 has increased by 20% and reached a new historical maximum. "Such a trend may indicate the growing dissemination of bitcoin and its acceptance among 'average' users," – Fidelity noted.   Specialists from CryptoQuant examined the SOPR indicator readings for these categories of investors and made conclusions similar to those of their colleagues from Fidelity. Investments in Bitcoin by "new" whales (owners of coins "aged" less than 155 days) almost doubled the indicator of "old" large players (more than 155 days). At the same time, the increased value of the metric showed that the profits of the "old" hodlers significantly exceed the indicators of the "newcomers". And if the "old-timers" move to fix profits, this may lead to the formation of price peaks. An analysis of the current picture, according to CEO of CryptoQuant Ki Young Ju, also speaks of the need to exercise caution in anticipation of possible corrections and increased volatility.   Recall that earlier, specialists from JPMorgan noted that digital gold is in a state of overbought. And co-founder of CMCC Crest Willy Woo noted that if the price of the first cryptocurrency falls below the support level of short-term holders at $58,900, the market risks moving into a bearish phase.   As of the evening of Friday, April 26, the BTC/USD pair is trading in the region of $63,950. The total capitalization of the crypto market is $2.36 trillion ($2.32 trillion a week ago). The Bitcoin Fear & Greed Index remained in the Greed zone, although it rose from 66 to 70 points.   Finally, in conclusion of the review, our long-forgotten crypto-life-hacks column. It turns out that in order to become a crypto millionaire, it is enough to have a marker and a piece of paper. The possibility of such a way of enrichment was proven by Christian Langlois, also known as Bitcoin Sign Guy. This guy made headlines in many news outlets after showing a notebook sheet with the inscription "Buy Bitcoin" behind the back of the Chair of the Federal Reserve System Janet Yellen. At that moment, the head of the Fed was giving testimony about the state of the US economy. This image instantly spread across the network and became one of the symbols of the emerging crypto industry.   For his misdemeanour, the 22-year-old intern Langlois was disgracefully expelled from the hearings. But after this episode was shown on television, enthusiasts sent 7 BTC to his crypto wallet to thank the guy for his bold move. Four years ago, Christian sold 21 copies of the "cult" sheet at an average price of 0.8 BTC, earning another 16.8 BTC. Thus, his total earnings reached 23.8 BTC, which is more than $1.5 million at the current exchange rate. And a few weeks ago, Langlois was offered another 5 bitcoins for the original, but he refused to sell the sheet. Nevertheless, Christian liked the idea of further monetizing the self-created object of "artistic and historical heritage", and he decided to sell it at an auction, directing the proceeds to finance his startup Tirrel Corp. On April 25, 2024, the auction house Scarce.City reported that the lot, which became a popular meme, was sold for 16 BTC (more than $1 million). NordFX Analytical Group   Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.   #eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market   https://nordfx.com/ 
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