BIS has said an important opinion about Stablecoins

zasad@

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Quote from: hugeblack on November 21, 2023, 02:32:31 AM

Quote from: zasad@ on November 20, 2023, 04:03:03 AM

https://twitter.com/elonmusk/status/1648691889846071296
"Elon Musk
Given Federal expenditures, it is a matter of when, not if, we default
Apr 19, 2023"

No currency will be able to replace the dollar because it is not backed by all economic equations, but rather by military and nuclear power, and until China gets rid of treasury bonds, it will be followed by the United States forcing other countries to bear its expenses. For example, there is talk about dollarizing the economy in Argentina.
Changing the economy in this way requires a world war or a return to the politics of alliances, where the world is divided into East and West, North and South, and so on.
But when we come to stable currencies such as USDC USDT, they are all based on corporate promises and the probability of their failure or collapse is higher than the probability of their collapse due to problems in US Treasury bonds.

Javier Miley is a pro-American president who is against relations with Russia and BRICS.
I am sure that it is not the dollar that will save the Argentine economy, but the Argentine economy will save the dollar. Freedom in this country will improve with the arrival of American companies in their markets.

hugeblack

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Quote from: zasad@ on November 20, 2023, 04:03:03 AM

https://twitter.com/elonmusk/status/1648691889846071296
"Elon Musk
Given Federal expenditures, it is a matter of when, not if, we default
Apr 19, 2023"

No currency will be able to replace the dollar because it is not backed by all economic equations, but rather by military and nuclear power, and until China gets rid of treasury bonds, it will be followed by the United States forcing other countries to bear its expenses. For example, there is talk about dollarizing the economy in Argentina.
Changing the economy in this way requires a world war or a return to the politics of alliances, where the world is divided into East and West, North and South, and so on.
But when we come to stable currencies such as USDC USDT, they are all based on corporate promises and the probability of their failure or collapse is higher than the probability of their collapse due to problems in US Treasury bonds.

joniboini

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Quote from: yhiaali3 on November 20, 2023, 11:55:39 AM

Isn't this the same argument they use to accuse "stablecoins"??!!! This is a real farce Huh

!!

They would argue that they have gold and other underlying assets to back it up. Basically the same thing Tether or others did, so yeah it is a bit hypocritical although there is a difference between who did it. Personally, I don't trust both of them but it is impossible to stick to crypto only as of now since the adoption rate around my area is not that high.

yhiaali3

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Yes, they are honest this time. Unfortunately, although they always lie, it has become known to everyone that currencies that call themselves “stable” are in fact similar to CBDC and perhaps worse.

But despite this, they are still lying and hypocritical. Today, by chance, I was reading this thread in the Bitcoin section:
~85% of money doesn't exist

If you read the topic, you will find that, according to the report, 85% of paper currencies such as the euro and the dollar do not exist on the ground, but are only numbers in banks.

Isn't this the same argument they use to accuse "stablecoins"??!!! This is a real farce Huh

!!

zasad@

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Quote from: hugeblack on November 19, 2023, 05:20:44 AM

For the currency to be a store of value, it needs to fulfill obligations, some of which are economic and others political and regulatory, the possibility of purchasing, and the ability to settle payments, all of which do not apply to stablecoins due to their small market capacity, and that there is no 1:1 peg to the US dollar, and there is no political or military force that can stabilize In short, a single regulatory decision that limits the access of these currencies to US banks or reduces holdings of US Treasury bonds could affect their value to be below $1, and rumors and panic will be enough to bring that value back to zero.

https://twitter.com/elonmusk/status/1648691889846071296
"Elon Musk
Given Federal expenditures, it is a matter of when, not if, we default
Apr 19, 2023"

Not a single government paper (fiat money), and especially digital candy wrappers USDT and USDC, can be a means of preserving capital.
Inflation in many countries devalues money every year.
The main reserve of USDT and USDC is American debt obligations, but if this pyramid collapses, then you need to understand that about half of the US government debt belongs to American companies and citizens. And most countries, such as China, are getting rid of Treasuries.

hugeblack

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For the currency to be a store of value, it needs to fulfill obligations, some of which are economic and others political and regulatory, the possibility of purchasing, and the ability to settle payments, all of which do not apply to stablecoins due to their small market capacity, and that there is no 1:1 peg to the US dollar, and there is no political or military force that can stabilize In short, a single regulatory decision that limits the access of these currencies to US banks or reduces holdings of US Treasury bonds could affect their value to be below $1, and rumors and panic will be enough to bring that value back to zero.

zasad@

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Quote from: Marvelman on November 18, 2023, 10:02:02 AM

I reckon some type of stablecoin's gonna stick around, no matter what happens with central bank digital currencies. We still don't really know what CBDC's gonna look like or how itll work. And will everybody actually be able to use it? That's why I figure there's gonna be unofficial and independent (somewhat) stable digital money, to some extent anyway.

In my country in Russia, CBDC will work through the applications of partner banks. The main advantage of CBDC will be that if the bank goes bankrupt or is closed, then I can dispose of my CBDC through the applications of another partner bank.
According to my logic, CBDC should work on its own application and be less dependent on banks, but a bank employee told me that then the central bank would have to hire thousands of technical support staff and maintain this system independently.
And in countries with high inflation and poor banking services, stablecoins will always be popular.

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I reckon some type of stablecoin's gonna stick around, no matter what happens with central bank digital currencies. We still don't really know what CBDC's gonna look like or how itll work. And will everybody actually be able to use it? That's why I figure there's gonna be unofficial and independent (somewhat) stable digital money, to some extent anyway.

zasad@

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Quote from: Poker Player on November 17, 2023, 11:07:32 PM

Stablecoins are going to be meaningless as soon as CBDCs are lauched and start functioning normally.

Quote from: zasad@ on November 17, 2023, 06:50:27 AM

Those who read my posts know how negatively I relate to such organizations as BIS and the IMF; even the devil sometimes speaks the truth.

I also believe that this is a case of them telling the truth, although partly interested, and related to what I mentioned above. Why are you going to have a stablecoin that has a hard time maintaining parity with the dollar or euro all the time if you are going to be able to have dollar or euro CBDCs?. Aside from the potential risk of bankruptcy. It's not going to make sense.

Centralized stablecoins USDT and USDC and other stablecoins are not very different in principle from CBDC.
At the same time, USDT and USDC and others even help the police and other intelligence agencies of different countries find criminals and track the movement of capital, because criminals refuse cash and use stablecoins.

Poker Player

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Stablecoins are going to be meaningless as soon as CBDCs are lauched and start functioning normally.

Quote from: zasad@ on November 17, 2023, 06:50:27 AM

Those who read my posts know how negatively I relate to such organizations as BIS and the IMF; even the devil sometimes speaks the truth.

I also believe that this is a case of them telling the truth, although partly interested, and related to what I mentioned above. Why are you going to have a stablecoin that has a hard time maintaining parity with the dollar or euro all the time if you are going to be able to have dollar or euro CBDCs?. Aside from the potential risk of bankruptcy. It's not going to make sense.

zasad@

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https://www.bis.org/publ/bppdf/bispap141.htm
"Stablecoins are a subcategory of cryptoassets that aim (or claim) to maintain a stable value relative to a specified peg. This paper provides an overview of the evolution of the stablecoin market over the past decade and examines whether stablecoins have stayed true to their name in terms of being "stable". We study 68 stablecoins and show that not one of them has been able to maintain parity with its peg at all times. This is irrespective of their size or type of backing. Moreover, we argue that there is currently no guarantee that stablecoin issuers could redeem users' stablecoins in full and on demand. For these reasons, we conclude that the stablecoins in circulation today do not meet the key criteria for being a safe store of value and a trustworthy means of payment in the real economy. This paper also highlights some significant data gaps. Without further data on the uses and users of stablecoins, it is difficult to ascertain the risks of stablecoins to the smooth functioning of payment systems and financial stability more broadly."

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Those who read my posts know how negatively I relate to such organizations as BIS and the IMF; even the devil sometimes speaks the truth.

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