Topic: Can stablecoins be able to prevent de-dollarization? (Read 573 times)

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.

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. 

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?

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.

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 .

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.

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.

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.

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?

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 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 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 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.

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.

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 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?

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.

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 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.

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?

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.

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?

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 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.

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

Can stablecoins be able to prevent de-dollarization?

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?

This bill establishes a regulatory framework for payment stablecoins (digital assets which an issuer must redeem for a fixed monetary value).

Only permitted issuers are allowed to issue a payment stablecoin for use by U.S. persons. Permitted issuers must be a subsidiary of an insured depository institution, a federal-qualified nonbank payment stablecoin issuer, or a state-qualified payment stablecoin issuer. In general, permitted issuers must be regulated by the appropriate federal regulator, however, state-qualified issuers must be regulated by an appropriate state regulator.

Permitted issuers must maintain reserves backing the stablecoin on a one-to-one basis using assets as outlined by the bill, such as U.S. coins and currency or other assets regulators determine appropriate. Permitted issuers must also publicly disclose their redemption policy, establish redemption procedures, and publish on their website every month the details of the issuer's reserves.

The bill sets forth requirements for (1) the rehypothecation, or reusing, of such reserves; (2) providing custodial or safekeeping services for stablecoins or private keys; and (3) supervisory, examination, and enforcement authority over non-state qualified issuers.

In addition, the bill places a two-year moratorium on new endogenously collateralized stablecoins (i.e., stablecoins that rely on the value of another digital asset created or maintained by the same originator to maintain the fixed price).

Under the bill, permitted payment stablecoins are not considered securities under securities law.

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...

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.

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?

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?

According to their article, their stable coin is 100% backed by U.S. dollar, so how can PayPal stable coin is preventing de-dollarization? if the stable coin really backed by U.S. dollar, it's actually still supporting USD but in different form.

I think almost all stable coin is using US dollar, treasury, etc as underlying value, only few stable coin is using other fiat due to low interest.

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 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?

According to their article, their stable coin is 100% backed by U.S. dollar, so how can PayPal stable coin is preventing de-dollarization? if the stable coin really backed by U.S. dollar, it's actually still supporting USD but in different form.

I think almost all stable coin is using US dollar, treasury, etc as underlying value, only few stable coin is using other fiat due to low interest.

PayPal USD is designed to contribute to the opportunity stablecoins offer for payments and is 100% backed by U.S. dollar deposits, short-term U.S Treasuries and similar cash equivalents. PayPal USD is redeemable 1:1 for U.S. dollars and is issued by Paxos Trust Company. 

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