Topic: Can stablecoins be able to prevent de-dollarization? (Read 484 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.
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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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.
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.
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.
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.
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.
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.
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?
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.
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.
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 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.
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. 
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.
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 .
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.
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
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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.
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?
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.
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.
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.
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.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.
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?
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.
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
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?
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.
I'm not quite sure how exactly the dollar is doing the "bearish favor" ?
In my opinion, billions of stablecoins only increase the demand for the dollar, and have a stabilizing effect on the dollar. The fact is that the more assets will have dollar collateral, the more favorable its stability is for everyone. Every 1USDT is a guaranteed demand for 1 dollar, because it is necessary to have it to secure a stablecoin. No one will build stablecoins on unstable, highly inflationary and unsecured currencies. Can you name a steiblcoin not based on the dollar or Euro ? By the way, there is only 1 stablecoin in Euro, which appeared not long ago, and its prospects are not very clear yet.... And there are objective reasons for that
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?
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?
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?
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.
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?
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 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.
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.
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?
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.
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.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. 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.
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.
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.
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.
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...
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...
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.
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.
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.
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.
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.
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.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. 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.
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.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.
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.
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.
If McHenry's bill passes in the US, it will at least rid crypto of the SEC's tutelage and hardline interventions. 
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.
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.
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?
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.
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.
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.
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. 
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?
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?
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.
Personally, I still use the USDT. A lot of people do. So what is this de-dollarization? Mostly in words. And in reality we see that the dollar exchange rate is gradually growing, although it should be decreasing under dedollarization. Something is wrong with this process
As long as people borrow and lend USD, USD will get stronger. When I say “USD will get stronger”, I don’t mean that USD will have a better purchasing power. I mean that USD will have a better user adoption in the future. Tbh I don’t see USD going away any time soon. The world is not ready for a revolution like that. We will keep using USD till we cannot anymore… we won’t choose some other currency magically.
When the USD becomes unusable, only then we will look for an alternative and people will probably decide to go with a crypto currency and bitcoin obviously is the most sensible choice here. But we still have a long way to go there.
When the USD becomes unusable, only then we will look for an alternative and people will probably decide to go with a crypto currency and bitcoin obviously is the most sensible choice here. But we still have a long way to go there.
The way I see it, stable coins are just a way to add more unneeded risk to your financial operations. They are pegged to fiat, so they are bound to inflate and lose value just like fiat and if the fiat money goes into hyperinflation, what will happen to the stable coin? So by using things like Tether, you are not immune to what the FED does with your money. They still have control. On top of that, the company that issues the coin has control over your money and you depend on their position on the market. If that company gets in trouble or decides to scam you, you lose everything. How is that better from holding cash, fiat money in the bank, or cash?
The only way to protect yourself is to hold a decntralized cryptocurrency like bitcoin, or something that is universally recognized to have value, like gold.
The only way to protect yourself is to hold a decntralized cryptocurrency like bitcoin, or something that is universally recognized to have value, like gold.
Can stablecoins be able to prevent de-dollarization?
Maybe so. But I think the basis of the depolarization is the international trade between countries and the PetroDollar. If let's say, Saudi Arabia which is the largest oil producer will start PetroYuan, then it's the start. To my knowledge, it hasn't been happening but they were very friendly with China since the time Joe threatened to make them Pariah.
The BRICS members however are already agreeing about this de-dollarization except India which opposed it since Modi wants Ruppee to be the one than Yuan.
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?
Are you referring to this billThe 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?
Quote from: https://www.billtrack50.com/billdetail/1639323
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.
Because if yes, then i am amazed to hear that companies could actually use stable coin because the bill is still in progress. I am just amazed because i thought if a company like USDT wants to live in USA then they must have 1 to 1 real USD to back them up but this bill in progress tell another story. Well, i am just asking here.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.
My views on this bill are, if it got approved then definitely it will bring good impact to US dollar because as the first member's comment says, pegged stable coin do need one to one US dollar back there to back there stable coin so in the process the demand for US Dollar will increase.
Is it (the stablecoins) created and used to prevent de-dollarization though? I don't think so. Paypal is a sunset platform anyway with so many new payment apps coming out (and having way cheaper fees) and Circle + Tether isn't big enough for the mentioned purpose. It's so small and basically does not affect the "de-dollarization" if the term is real, and not wishful thinking. As long as goods and services are happily using USD for international trade, I don't think de-dollarization will happen. There must be some incentive to use the non-USD currency for International Trade to make it work. Anyway, this move is just to make Paypal relevant again since many people now switching to other payment apps, me using Wise for example because it's cheaper and faster.
That is really funny because the last time any of us checked, the dollar was already dominating the world and it will keep doing so. The Dollar to X-currency conversion and use of dollar reserves for every country will never stop. Literally every country is always looking forward to having their dollar reserves at the top because that is what is needed to buy foreign assets or foreign imports. Definitely, the Dollar is already backed up with an amazing strategy and high-value transactions. The dollar was threatened many times and they also thought that GBP would be the next currency we will be considering as the king of all, but it never happened even when sterling ruled the world already back in the time. If there is anything they need to do is to maintain their repo as they did until now and keep up with the lesser interest and strategy to minimize the inflation in the country. The dollar kingdom will keep up always.
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. 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.Although the process of de-dollarization is happening, it is not able to weaken USD dominance overnight. USD is still the world's reserve currency, so it is very normal for stable coins to remain pegged to USD. But if de-dollarization happens faster and the USD loses its position and value, then stablecoins will soon be pegged to another currency as well. Like CZ came up with this idea when the stable coin BUSD was attacked by the government. 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...
Currency wars are much bigger and it is outside the influence of the cryptocurrency market, so the stablecoins market will not affect the currency wars of countries.
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 don't think so, because Dedollarization is more precisely related to transactions between countries that do not use the dollar as a transaction tool, so it will return to the country that is conducting the transaction, whether to continue to use the dollar as a transaction tool or use its own 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?
This includes cooperation, today Paypal may issue its stable coin which is pegged to the dollar, but that is not an indicator that the dollar will be used, if the transacters are China and Indonesia, for example, China buys goods from Indonesia using rupiah as well as Indonesia using yuan when you want to buy goods from China.
But maybe retail trading, preferring stablecoins to make transactions. CMIIW
You mean centralized shittokens created and controlled by centralized companies? I think it is obvious that it can not do anything let alone prevent dedollarisation! Such companies can be easily shut down not to mention that they are practically releasing dollar just in digital form.
You are also forgetting that the countries are decreasing their dependence on dollar (aka dedollarisation) because they want to reduce the effects that dollar (in any form it has) on their economy and country as a whole.
For example they don't want to have their funds frozen in off-shore accounts or services like SWIFT just because they didn't fully obey what US had ordered them to do. So whether it is SWIFT or iFinex (releasing tether) or Circle or PayPal or whatever is not going to change that.
You are also forgetting that the countries are decreasing their dependence on dollar (aka dedollarisation) because they want to reduce the effects that dollar (in any form it has) on their economy and country as a whole.
For example they don't want to have their funds frozen in off-shore accounts or services like SWIFT just because they didn't fully obey what US had ordered them to do. So whether it is SWIFT or iFinex (releasing tether) or Circle or PayPal or whatever is not going to change that.
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 arrangement of stablecoins is more economically inclined than other cryptocurrencies, they are backed by assets, which could be gold, currency and others. And since most stablecoins are backed by the USD, then it's a better strength for the USD because they are actually acting like it.I've always said that those who are trying to change the world balance would fail, we should enjoy the somewhat freedom and stability we have now because those countries trying to enforce de-dollarization will become more evil than good over time, they have the tendency to rule maximally.
However, my resolve remains that they will only try but will always fail as the USD is the only currency with reference to the past history that can hold that status. Not even the Chinese Yuan that is often been manipulated through pegging and is less popular in the FX market.
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.
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.
Nothing changes if Paypal coin is backed up by USD. The US dollar has being be most used currency for back up by stable coins because it has the high value among all fiat currency. Fiat dollar is the same with US stable coins and it is made like that,so that you can have access to use the US dollar physically or digitally, when making transactions. De-dollarization is happening but it isn't showing a much impact on dollar since no other fiat currency in the world has the same value as dollar. Also we should know that other country fiat currency is depreciating due to inflation. No government can stop inflation since it is part of the economy.
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?
Dollar will remain dollar and this wouldn't change anything, the adoption especially the foreign reserves will maintain their policy, what's the use of stablecoins when the fiat will do the same job, just one is digital and the other is physical. I think the central bank digital currency will do the opposite adoption for people who value dollar than stablecoins that always have dishonesty in financial audit.
Perhaps this will strengthen the PayPal company transaction, nothing new under this new polarized stablecoin. Only PayPal will earn from the loans they will lend out, interest rate from borrowers and fee from transaction because people will be willing to use PYUSD since people can get the chance to redeem it for physical USD, more transactions, more fees and more revenue for the company, and when people don't feel safe with USDT and USDC, they will rush to PYUSD especially during depegging of the value we normally have in FUD times.
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?
Currently, the dollar is the safest fiat currency to back stablecoin because it is more stable compared to other fiat currencies. Paypal has an estimated 429 million users worldwide and PayPal USD (PYUSD) will be available for them to adopt. But this doesn't mean that it will make the dollar stronger because other factors contribute to the value of a currency. With this news, Alipay might come up with its stablecoin backed by the Chinese Yen. 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 McHenry bill will be the first comprehensive law on crypto regulations, we are expecting to see the effect of its provisions. But there is not much difference between Central bank digital currencies (CBDCs) and stablecoins. The only difference is that CBDCs are issued by the government while stablecoins are handled by private firms. They are all fiat clothed in crypto.
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.
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.
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.
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.
Yes, PayPal is supporting USD and I think that's what OP mean by Preventing de-dollarization so USD will still be dominating, or I am wrong about the meaning of preventing de-dollarization.
It's true that PayPal will support USD, but that is assuming if PayPal stable coin project is succeed, and also we already have USDT and many other stable coin, but de-dollarization is still happening.
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.
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.
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?
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?
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