Can stablecoins be able to prevent de-dollarization?

Argoo

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Quote from: |MINER| on October 13, 2023, 01:37:39 PM

If we see that most of the stable coins are backed by USD, then what is the point? That means these cryptocurrencies ie stable coins are making usd more powerful. I think everyone who knows about these kinds of things well, they all will agree with that. If there the stable coins were backed by some other fiat currency then there would be a possibility that those stable coins will do de-dollarized. So I think such stable coins will increase the dollar's strength and actually prevent De-dollarization.

We have to agree with your opinion. Most stablecoins are backed by dollars, which essentially means that the dollar is a non-cash currency, only in the world of cryptocurrency. Therefore, such stablecoins fuel and strengthen the dollar, as they provide increased liquidity.

But for the stability of the cryptocurrency market, it would be better if stablecoins were adequately backed by other world currencies, such as the euro, pound, yuan, and yen.

|MINER|

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If we see that most of the stable coins are backed by USD, then what is the point? That means these cryptocurrencies ie stable coins are making usd more powerful. I think everyone who knows about these kinds of things well, they all will agree with that. If there the stable coins were backed by some other fiat currency then there would be a possibility that those stable coins will do de-dollarized. So I think such stable coins will increase the dollar's strength and actually prevent De-dollarization.

danadc

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I had thought about this type of things before and I had not realized that the USDT has that capacity, because it would be good on that side, because an economy based on bitcoin, which is ideal for me, I do not see it as viable for some countries that are so Jealous with their local Currencies , but seeing that the increase in local currencies is getting lower, since the dollar is the one that dominates, I prefer that it continue like this, because one already gets used to the fact that if one has dollars in cash , one Saves them and It has value, that is to buy normal things , but to save I do like to do it in bitcoin , because it is what is Smarter.

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Quote from: OgNasty on October 10, 2023, 02:10:57 PM

Quote from: wxxyrqa on October 09, 2023, 11:33:57 AM

Quote from: Pejoh Asu on August 21, 2023, 08:03:26 AM

In my opinion, stable coins are different from cryptocurrencies such as bitcoin or altcoins, an unchanging value is of course different from the concept of decentralization which is always fluctuating, and the issue of stable coins whether based on real money is of course something that worries us because it will make people blame cryptocurrencies if problems occur .

All stablecoins have the same task - to minimize the risks associated with the volatility of cryptocurrencies.
The cryptocurrency world, which has been predicted to collapse so many times, is growing and developing.
Stablecoins are an attempt to find a compromise between the traditional financial system and the cryptocurrency market, without opposing them, with the goal of their harmonious merger. And it's a pretty good try.

If you think about it, stablecoins are basically just private entities printing dollars. This is why I don’t think the government will allow them to continue much longer. The only end results I see for stablecoins is either they lose their peg and crash or they get shut down by regulators. There is no scenario they continue on in harmony long term.

if this happens, what then do you will happen to other cryptocurrencies aside bitcoin, since I personally have come to terms with fact that bitcoin is the only true decentralized cryptocurrency, every other cryptocurrency out there is either completely centralized or have a centralized backing.

Stablecoins just as you have said as centralized, most especially, if we are looking at tether, Busd and the likes, if the government are going to be shutting down stablecoins, will they also be shutting down every altcoin in the cryptocurrency market as well ?

I personally do not see such a move from the government as ideal, since this are private businesses just like any other business out there, they don't force people to patronize them or some sort, cryptocurrency trading itself need stable coins to help traders mitigate the effect of the high fluctuations in the market, I don't see why the government would want to shut down stable coins in my honest opinion.

el kaka22

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I do not think so, the connection between them is not really that tight and I do not think that it would be enough to make that move go reverse. However, I also do not think that de-dollarization is as big as people think, dollar is still dollar and even if there are some "enemies" of USA that doesn't want to hold those dollars anymore, there will be other nations that would be glad to get it as well.

So this will happen a slight bit maybe, but it will not be as big of a deal as people think. Not that it will be a small deal because of stablecoins though, that has nothing to do with it, the amount between them is not all that tiny and the result will not be close to each other at all, we are going to see a huge difference. While one of them is near trillions, the other is not even a single trillion, it is a few hundred billion in total, most of it from within so it is not really a big deal. I think we should just let it happen and see what we can position ourselves towards.

panganib999

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Isn't it the other way around? Like stablecoins being pegged to the dollar and not the other way around? So when the dollar is devalued, stablecoins like USDT will follow suit.

I guess an argument can be made for other stablecoins that are not backed by the dollar like digital gold or whatnot, but for the most part the narrative implies that we can't use these things to stave off an impending dedollarization. They'd lose their peg when that happens, or they will get shut down by other governments and regulators. PayPal USD is only for them right? Like it doesn't hold any other usage besides being the stablecoin you would use within PayPal's platform. I don't think there's any way for the government to make use of this especially during a massive event like the dollar losing its power and hold of the world economy.

Sayeds56

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Quote from: zasad@ on August 13, 2023, 05:58:59 AM

You know that PayPal has already launched its own stablecoin.
The company Circle and Tether uses a dollar stablecoin, which is used not only by American companies. If the McHenry bill is passed in the US, will it strengthen the dollar as the world's reserve currency?

Indeed, you are correct, Pay pal launched its own stable coin (PYUSD) back in August, 23, which is 100% backed by US Dollar deposits. This is a welcome move and we should view it as a step forward towards adoption of cryptocurrencies. It is worth mentioning that PYUSD was launched on Ethereum block chain which is considered most reliable network for robust support of smart contracts.

As for McHenry bill in the US House, it is a positive development for future of crypto currencies. I firmly believe that addressing regulatory issue is of paramount important to dispel uncertainty surrounding digital assets. Clear band well defined regulations will contribute to increased adoption and growth in cryptocurrencies sector.

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Quote from: wxxyrqa on October 09, 2023, 11:33:57 AM

Quote from: Pejoh Asu on August 21, 2023, 08:03:26 AM

In my opinion, stable coins are different from cryptocurrencies such as bitcoin or altcoins, an unchanging value is of course different from the concept of decentralization which is always fluctuating, and the issue of stable coins whether based on real money is of course something that worries us because it will make people blame cryptocurrencies if problems occur .

All stablecoins have the same task - to minimize the risks associated with the volatility of cryptocurrencies.
The cryptocurrency world, which has been predicted to collapse so many times, is growing and developing.
Stablecoins are an attempt to find a compromise between the traditional financial system and the cryptocurrency market, without opposing them, with the goal of their harmonious merger. And it's a pretty good try.

If you think about it, stablecoins are basically just private entities printing dollars. This is why I don’t think the government will allow them to continue much longer. The only end results I see for stablecoins is either they lose their peg and crash or they get shut down by regulators. There is no scenario they continue on in harmony long term.

wxxyrqa

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Quote from: Pejoh Asu on August 21, 2023, 08:03:26 AM

In my opinion, stable coins are different from cryptocurrencies such as bitcoin or altcoins, an unchanging value is of course different from the concept of decentralization which is always fluctuating, and the issue of stable coins whether based on real money is of course something that worries us because it will make people blame cryptocurrencies if problems occur .

All stablecoins have the same task - to minimize the risks associated with the volatility of cryptocurrencies.
The cryptocurrency world, which has been predicted to collapse so many times, is growing and developing.
Stablecoins are an attempt to find a compromise between the traditional financial system and the cryptocurrency market, without opposing them, with the goal of their harmonious merger. And it's a pretty good try.

pooya87

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Quote from: Argoo on October 06, 2023, 10:04:49 AM

If stablecoins are backed by the dollar, then this, in my opinion, will only strengthen the dollar, since it will mean the circulation of the same dollar. If a stablecoin is supported by another national currency, then, on the contrary, to some extent it will weaken the dollar. If the stablecoin is backed by another financial asset, then this should have virtually no visible impact on the dollar.

For stablecoins to strengthen the dollar they have to fulfill two things.
1. Actually being backed by US dollar at a 1:1 rate.
This is obviously not true and never been. The biggest stablecoin that is Tether is known for not being backed by dollar for many years, specially since 2016-17 when they started printing a ton of it out of thin air in short intervals.

2. To be massive (in tens of trillions)
So far the biggest shitcoins have only been able to print billions of their token and as I said, even that is not backed by dollar so the real value is not even in tens of billions. In order to have any effect on the strength of the dollar they have to be much much bigger than this.
For example when we say Petrodollar used to strengthen the dollar, we were talking about $10 billion wroth of oil every day (102 million bpd) which $3.5+ trillion annually.

Argoo

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Quote from: Negotiation on August 21, 2023, 08:12:26 AM

I think these stablecoins are not the same as crypto stablecoins are cryptocurrencies whose value is added to the value of other assets, and stablecoins are a type of cryptocurrency whose value is linked to other asset classes to maintain a stable, fixed value. They are generally held as strains of cryptoassets that reduce volatility. Most safe backing assets are usually collateralized with cash or highly liquid assets such as money market funds or commercial paper stablecoins are low volatility assets. They are usually denominated in fiat currency, their value does not fluctuate in the same way as other crypto assets.

If stablecoins are backed by the dollar, then this, in my opinion, will only strengthen the dollar, since it will mean the circulation of the same dollar. If a stablecoin is supported by another national currency, then, on the contrary, to some extent it will weaken the dollar. If the stablecoin is backed by another financial asset, then this should have virtually no visible impact on the dollar.

Negotiation

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I think these stablecoins are not the same as crypto stablecoins are cryptocurrencies whose value is added to the value of other assets, and stablecoins are a type of cryptocurrency whose value is linked to other asset classes to maintain a stable, fixed value. They are generally held as strains of cryptoassets that reduce volatility. Most safe backing assets are usually collateralized with cash or highly liquid assets such as money market funds or commercial paper stablecoins are low volatility assets. They are usually denominated in fiat currency, their value does not fluctuate in the same way as other crypto assets.

Pejoh Asu

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In my opinion, stable coins are different from cryptocurrencies such as bitcoin or altcoins, an unchanging value is of course different from the concept of decentralization which is always fluctuating, and the issue of stable coins whether based on real money is of course something that worries us because it will make people blame cryptocurrencies if problems occur .

DrBeer

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Quote from: tjtonmoy on August 18, 2023, 11:54:36 AM

Almost every stablecoin is backed by the US dollar. Many stablecoins are in existence and the majority of them are backed by the US dollar. There are no competition to this and people are confident in using stablecoin that is pegged with USD. De-dollarization is happening but not is a large scale. As there isn't any competition to this, USD will still be the most reliable currency which will be used as a global reserve currency. As de-dollarization is happening in the physical world, it that happens, pegged stable coins will also lose value accordingly.

As USD is pegged to stablecoins, changes in the crypto market won't affect the physical world. Instead, it's the opposite. Any changes in the physical world will affect the crypto market. Also, there are sentiments attached to the market. So people using less or more stablecoins will be determined by that. For this reason, I don't think stablecoins will be able to prevent de-dollarization.

The presence on the market of a large number of dollar-backed stablecoins, and the small presence of stablecoins backed by other currencies and even gold, and especially if you compare their capitalization - directly answers the question "is the dollar stable" and how much it is in demand.
And this is the best answer to the supporters of dedolarization: the world economy and individuals need a stable equivalent, and there is nothing better than the dollar today. Whether someone likes it or not. And the saddest thing for the supporters of dedolarization is that there is no currency or asset even on the horizon that can replace the dollar in the world economy and world recognition. There are more expensive currencies, bigger countries, longer currency names - but that doesn't make them as powerful as the dollar ! The attempt to replace the dollar comes down to a call - "let's not breathe nitrogen-oxygen mixture, as is common for all people, but oxygen-carbon dioxide air. Because someone doesn't like nitrogen and its leading position in our breathing mixture

)

tjtonmoy

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Almost every stablecoin is backed by the US dollar. Many stablecoins are in existence and the majority of them are backed by the US dollar. There are no competition to this and people are confident in using stablecoin that is pegged with USD. De-dollarization is happening but not is a large scale. As there isn't any competition to this, USD will still be the most reliable currency which will be used as a global reserve currency. As de-dollarization is happening in the physical world, it that happens, pegged stable coins will also lose value accordingly.

As USD is pegged to stablecoins, changes in the crypto market won't affect the physical world. Instead, it's the opposite. Any changes in the physical world will affect the crypto market. Also, there are sentiments attached to the market. So people using less or more stablecoins will be determined by that. For this reason, I don't think stablecoins will be able to prevent de-dollarization.

Sayeds56

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Quote from: zasad@ on August 13, 2023, 05:58:59 AM

You know that PayPal has already launched its own stablecoin.
The company Circle and Tether uses a dollar stablecoin, which is used not only by American companies. If the McHenry bill is passed in the US, will it strengthen the dollar as the world's reserve currency?

You are right that potential passage of Mchenry bill will be very positive development, and the adoption of stable coins, including those pegged to US dollar by American companies and international users could potentially contribute to the dollar influence in the global financial system. However, it is important to note that status of stablecoins and cryptocurrencies regulations, global economic dynamics can change rapidly.

Joshapat

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In my opinion, an analysis of stable coins that are currently in circulation and active is estimated to be no more than 0.00001% of the number of dollars in circulation so that whatever happens to stable coins based on dollars will not have any impact, it's natural that many don't think too much about stable coins because it has no impact on the USD.

Captain Corporate

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Not impossible to be fair. I mean looking at the situation I can say that there are a lot of crypto people who are interested in dollars that may otherwise not be interested in it. Between having stablecoins, and also being able to trade crypto with those, that means if you are in the crypto world, you are more likely to be involved with dollars as well. Would this be able to stop or prevent de-dollarization? I do not think so, some nations are adamant about not using dollars at all and use their own currency because USA is too powerful and they want to get some of that power. I think that's totally understandable but we are looking like we may end up having some help towards dollar at least.

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Quote from: pooya87 on August 15, 2023, 01:01:48 AM

Quote from: coupable on August 14, 2023, 08:01:29 AM

So far, the problem with most of these currencies is that it is not certain that they actually have a dollar cover that covers all the stable currencies that are issued.

Exactly. It is interesting that not so long ago most topics involving stablecoins were about their scam nature because the centralized companies issuing them nonstop had never shown any proof of funds. They just keep printing tokens out of thin air! But these days people seem to have either forgotten that or have ignored it completely.

The other important point that prevents the use of stable currencies as a real alternative to the dollar is the decentralized nature of these currencies, since they were all developed on networks that operate in the blockchain system. This same point is what helps developers to produce an infinite number of them without the need for support or confirmation from any regulatory body.
As we have mentioned in other discussions, there is no reason to be afraid of the dollar and it is not in the interest of the global economy to abandon its use since the largest percentage of countries' reserves in foreign currency is in US dollars. And even if they wanted to do so, there is currently no real alternative capable of playing the same dollar in the global economy.

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Quote from: karabiber on August 16, 2023, 02:06:01 AM

Quote from: 19Nov16 on August 15, 2023, 09:22:48 AM

Quote from: zasad@ on August 13, 2023, 05:58:59 AM

You know that PayPal has already launched its own stablecoin.
The company Circle and Tether uses a dollar stablecoin, which is used not only by American companies. If the McHenry bill is passed in the US, will it strengthen the dollar as the world's reserve currency?

Stable Dollar -based coins, of course, are things that will strengthen the USD globally, when people use stable coins, they automatically store dollars, and of course it is a natural thing if the USA government will support all things that strengthen the dollar position.

The US is not very positive when it comes to crypto assets. US regulators often state that cryptocurrencies will be harmful to the financial system and the economy and they constantly send negative signals to the market. The US is actually doing itself a disservice here. Because the presence of stablecoins is increasing all over the world, which is a positive situation for the citizens of countries struggling with inflation. Dollars are not easy to reach in most of the countries struggling with inflation and poverty and the citizens of these countries turn to dollar denominated products to keep their income in a safer environment after earning money due to high inflation. The difficulty of reaching the dollar may lead people to stablecoins. Stablecoins have a big stake here but the US is doing itself a disservice with strict stablecoin regulations. If the US government allows stablecoins to be supported, i think it will increase demand and contribute to the global adoption of the Dollar. Unfortunately this doesn't look like it will happen anytime soon.

The US's limits view of crypto, especially stablecoins, fails again. The chapters of history were thrown out the window without any lessons. Do they miss the big picture? The US does what when countries throughout the world are battling with inflation and their people want financial stability? They strive to pass measures that undermine global financial progress.

Stablecoins can help economies near collapse. This is clear. But the US misses an opportunity to strengthen the Dollar globally. It remains away due to its strong convictions. They're hurting themselves. The way they keep tripping over their own feet is so sad that it makes you laugh

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