Can stablecoins be able to prevent de-dollarization? - page 2.

Smack That Ace

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Quote from: karabiber on August 16, 2023, 03:06:01 AM

Quote from: 19Nov16 on August 15, 2023, 10:22:48 AM

Quote from: zasad@ on August 13, 2023, 06:58:59 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.

When we talk about cryptocurrencies, we are talking about bitcoin and altcoins, not just stablecoins. Therefore, there is nothing wrong with them considering cryptocurrencies to be harming their financial system and economy. The US government has a negative view of the entire cryptocurrency industry, and stablecoins represent only a small portion of the industry.
Furthermore, I don't see any positive impact on USD as stablecoins choose USD to peg their stablecoins. Because when you look at the market capitalization of stablecoins, it's even several times smaller than bitcoin. With a market capitalization of only a few hundred billion USD, how can we turn the currency war worth hundreds of trillions of dollars circulating in the world economy?

karabiber

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Quote from: 19Nov16 on August 15, 2023, 10:22:48 AM

Quote from: zasad@ on August 13, 2023, 06:58:59 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.

19Nov16

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Quote from: zasad@ on August 13, 2023, 06:58:59 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.

bussybuddy

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The USD remains one of the most popular and stable currencies in the world, and its full replacement in the future will require a major shift in financial structure and global scale.

On the other hand, Bitcoin and other cryptocurrencies are also more widely accepted and used in many ways. The development of blockchain technology and the possibility of comprehensive, decentralized transactions has created a positive vision of the potential of cryptocurrencies. However, as you mentioned, a complete replacement of USD with crypto is not going to happen in the nearest future.

We still need time to see the transition from the traditional monetary system to digital currencies. This process will involve changes in infrastructure, legality and user psychology. Regardless, Bitcoin will still become an important part of the financial future which is very interesting to watch.

davis196

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Quote from: zasad@ on August 13, 2023, 06:58:59 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?

USD backed stablecoins are nothing else than US dollars, that are hidden behind a shiny "crypto" package(which actually isn't crypto at all).
I don't know how a USD backed stablecoin can be more useful than actual US dollars. The only thing that makes stablecoins useful is their role in cryptocurrency trading. A stablecoin is basically useless outside the crypto exchange platforms.
Is there a way for these USD backed stablecoins to add more value and utility to the US dollar? I don't think so.
The process of de-dollarization in certain countries and continents will continue and the stablecoins cannot be used to stop such process.

pooya87

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Quote from: coupable on August 14, 2023, 09:01:29 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.

Quote from: Wealthclub777 on August 14, 2023, 09:59:17 AM

Actually currency have value If people belive on this and why not USDT it's kind of stable thanks to tether btc holdings and it's good hold in your wallet and good liquitty to trade or exchange people love it and many people use USDT to make transactions.
Even paypal now use ETH blockchain what people dont Understood is that the btc and eth are here to stay and will used by many financial enteties.

The problem is in centralization of these things.
All stable coins are centralized one way or another, not to mention that they practically have their hand in your pocket and can freeze your money at any time they want: https://bitcointalksearch.org/topic/updated-psa-most-stablecoins-can-be-frozen-even-in-your-own-wallets-5204055
It's the same with shitcoins like ethereum. It also is centralized and with all the other vulnerabilities in its protocol and the reversible blockchain it has, makes it a very risky project as a whole with a shaky future at best.

flyingcarpet

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Quote from: kryptqnick on August 13, 2023, 07:53:56 AM

The dollar is already very strong as the world's reserve currency. The so-called de-dollarization is greatly overestimated, and wild allegations of moving away from the USD usually aren't serious. There's a neat Wikipedia table that summarizes the IMF data on foreign reserves. As of 2022, the USD accounts for more than 58%, with the next currency (EUR) having 20%, and the next being shy of 6% (Japanese yen). So the USD dominance is clearly still very string, and it's not even falling if you zoom out, as it was lower in 1990, 1985, and around the same in 1980, for example.
What I'm trying to say is that the USD doesn't need anything to get stronger and prevent de-dollarization, and there's data that supports that claim. As for stablecoins, I don't think they increase the trust in the USD, to be honest, but I don't think they do much harm to it internationally either.

While the USD is so strong, there can be negative articles and news about it. In other words, negative news may come, but I find it meaningless because it is usually in the form of an attack. I looked at the chart and I think the dollar's dominance will continue in this way. Because there is no concrete data showing the opposite.

It would be wrong to associate stablecoins with USD for any trust factor. Anything negative in any stablecoin changes nothing in USD.

DrBeer

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Amazing topic

Sounds like - "will the use of a manual massager have an impact on the global heel hair crisis ?"

Do not understand the example ? To clarify - the headline is about a problem that does not exist

What dedollarization ? Can anyone give an example, where in normal countries participating in the world economy, this "fabulous" dedollarization is taking place ?
I can ask a counter-question - does anyone know and can name a successful and demanded stablecoin, backed not by dollar but by another currency ?

I know one stablecoin, launched just yesterday, but its weight in USDx-stablecoins is still at the level of error. And it is EURO, not some slag....
To clarify - Circle has launched Euro Coin (EUROC) steiblcoin pegged to Euro exchange rate in Avalanche network. Do you have a lot of them in your accounts ? Do you know about it ?

And that it is far away from the high demand of consumers, and its application will be less wide, due to many features of the euro currency itself...

Yogee

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I doubt stable coins and the passing of a bill that aims to regulate them would prevent de-dollarization. They are easier to transfer than USD but it's still highly dependent on USD so it's almost the same thing. It just doesn't make sense for countries supporting BRICS to suddenly go back to a USD backed currency just because it became digital.

Wealthclub777

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Not just usdt and busd and USDC but also btc will protect the dollar.

Think about when you issue the currency you can't issue the endless Loans or endless mbs contracts or bonds or treasury.
But If most of the currency is backed by commodities like btc you could issue a lot currency without even worry about inflation.
And USDT tether are one of the biggest btc HOLDERS.

Actually currency have value If people belive on this and why not USDT it's kind of stable thanks to tether btc holdings and it's good hold in your wallet and good liquitty to trade or exchange people love it and many people use USDT to make transactions.
Even paypal now use ETH blockchain what people dont Understood is that the btc and eth are here to stay and will used by many financial enteties.

Bitcoin is superior it's a king of the financial jungle.

Helena Yu

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If the stable coin use USD or anything that related to US cash equivalent, you're still using USD and it's not de-dollarization.

Using Bitcoin or other local currency is actually de-dollarization, but it's not that easy to shift to other local currency and most of people aren't use Bitcoin as a currency. However, is dollarization is a matter? I don't really think so because any fiat is pretty much same, always inflated overtime.

coupable

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Quote from: zasad@ on August 13, 2023, 06:58:59 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?

Considering that these stable currencies, including the currency issued by Paypal, are backed by the US dollar, they do not go beyond being a new form of the dollar that can be called a digital dollar.
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. And in all cases, the dollar's crises require solutions of another kind, at least to maintain its position as a global currency, especially since there is a global trend to reduce its use. One of the biggest crises of the current dollar is the foreign policy of the United States itself, which strengthens the alliance of its enemies against it.

zasad@

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Quote from: _act_ on August 13, 2023, 07:04:20 AM

Quote from: zasad@ on August 13, 2023, 06:58:59 AM

the McHenry bill is passed in the US, will it strengthen the dollar as the world's reserve currency?

The USD stable coins are backed and pegged mostly with fiat USD, that means as more people are buying the stable coins, the company that are offering the stable coins will buy more USD fiat. People across the world can buy the stable coin easily on exchanges and this is increasing the strength of USD as a foreign reserve.

Unfortunately, it is not. Stablecoins are virtually pegged to the dollar, but technically American treasuries are backing the coins.
China and other countries are slowly starting to get rid of treasuries, and there is no one to sell treasuries. And here companies with their stablecoins are forced to buy these obligations.

Hispo

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Besides the fact the USD continues to be a relatively strong reserve currency around the world, I can also say that USD backed tokens or stablecoins have played an important role here in my country to further increase the access people have to the USD without having to deal with the government as a third party.

To some extend, I do think stablecoins could indeed help USD not to fall from grace among users un developing countries, but it would also depend on how governments in such countries treat the adoption of the dollar against their local currencies, Venezuela and Argentina are examples to keep our eyes open and see how they develop, in such inflationary situations.

yhiaali3

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If McHenry's bill passes in the US, it will at least rid crypto of the SEC's tutelage and hardline interventions. Wink

In any case, I think that stablecoins backed by the dollar, especially the last stablecoin Paypal, will have a major role in enhancing the strength of the dollar and preventing de-dollarization due to the strength and spread of Paypal around the world with its financial services. We all know that these stablecoins are central and subject to the control of the US government through their submission to US regulatory laws .

So I think it will have a big role in strengthening the dollar around the world.

BambiDx

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Quote from: zasad@ on August 13, 2023, 06:58:59 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?

Stablecoins which are tied to assets such as the US dollar can have an impact on de-dollarization by providing alternative reserves, transaction stability and lowering reliance on traditional banks. However, geopolitical reasons, regulatory issues and market manipulation may all influence their acceptance.

Marvell1

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Quote from: _act_ on August 13, 2023, 10:14:35 AM

Quote from: Marvell1 on August 13, 2023, 09:46:58 AM

He also shared his view that he will find ways to reduce dependence on the USD and create stablecoins pegged to currencies such as the Yuan or the JPY...

I remember when CZ said he will find other ways. But what other ways has he found now? If he talked about using Yuan and Yen, he is only deceiving himself. Those backed stable coins are backed by their respective fiat, like USDT, USDC, BUSD, TUSD all backed by United States dollar, while coins like Euro Tether backup by Euro which is the second strongest currency in the world. No on can use the fiat of another country to back the stable coin that is not backed by the fiat. Instead, using assets like gold may be better but which would be of small percentage to fiat.

I agree that it's just an idea and things haven't started yet, and implementation takes time so you can't expect it to happen anytime soon. Also, just because it hasn't happened doesn't mean it won't. As I said, the crypto market is too small and won't be strong enough to salvage de-dollarization, this is a political battle and the US needs to confront. Whether stablecoins are pegged to other currencies will depend on the currency wars between countries. Once USD loses its dominance, they will inevitably remove it to support stable coins.

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Quote from: rikybrosh on August 13, 2023, 11:41:38 PM

I am not sure but I think this problem is more related to political interest of each country. honestly I think it is not enough to make people stay to use dollar, but I appreciate any act that support or embrace cryptocurrency. I hope there are more something like this so cryptocurrency future can be brighter.

I disagree, if something is happening in the USA, I think that anyone around the world should be watching because there's a high possibility that their country will also be affected as dollar is still the currency used for most international trades.

Can you elaborate on what the McHenry bill is all about? There's no news stories about it although there's a Senator McHenry appearing on my Google search. Does this involve anything about trade? budgets? fiscal stuff? That's most of the ways that you can strengthened the dollar. As for the question in the title, it depends, if the stablecoin pegged to USD gets more accessible and popular than using the traditional USD which then offers alternative for international trades another thing would probably be the country and their willingness to switch to the stablecoin, if they're an ally they might not consider depending on that stablecoin and vice versa for countries in direct competition against USA.

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Quote from: zasad@ on August 13, 2023, 06:58:59 AM

If the McHenry bill is passed in the US, will it strengthen the dollar as the world's reserve currency?

Naturally, stablecoins which are pegged to the US dollar like the PayPal USD has the potential of strengthening it because they offer an alternative way of accessing the dollar. It would take a lot to suppress the dominance of the Dollar as the globally accepted reserve currency and while the BRICS nations are looking to thwart it's effort, these tokens are providing a tool to maintaining the global influence of the dollar.

stompix

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You don't need some shitty tokens to prevent this myth of de-dollarization!

All you need is other currencies from other countries that are bragging all day about the de-dollarization effort to be really shitty currencies.
Like for example the Russian ruble:

The Iranian Rial:

Or another Brics aspiring currency, the majestic peso:

If even the major and more stable currencies like the yuan and the euro are actually losing against the $, how in the name of god do you imagine people dumping the dollar for a currency that is basically toilet paper?
If this de-dollarization would be even remotely true on a real business level and not just political stunts by failed wannabe dictators you would see traces of it right here on this forum. So, how many services or signatures are paying in anything other than good old dollar equivalent?

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