Governments will issue "stablecoins" on existing main stream blockchains - page 2.

o48o

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Quote from: Guessti on December 05, 2022, 10:30:56 PM

Using existing blockchains such as Ethereum and maybe one day Bitcoin they will bypass the banking systems completely and create a fully digital form of the dollar, hosted on blockchains.
-cut-

Nope, they won't use any existing mainstream blockchains as they are not regulatory friendly nor they have enough privacy. I see GDPR issues and all sorts of other AML issues without even thinking it over 1 minute. People telling you that eth would be ready for something like this don't know enough about regulations around monetary system. Blockchain that would suitable for this needs to be auditable and at the same time private to the core of it.

avikz

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Governments will never issue stablecoins on a mainstream blockchain like ETH. I will draw example from my own country which has recently introduced digital cash on a blockchain. This is a private blockchain our central bank has used. So even if the digital currency is using a blockchain, it's centralized to the core!

Also this digital currency is created outside of banking network. Which means, you have a separate wallet where you need to buy digital currency using fiat at 1:1 ratio. Then use that wallet to do the transactions which is happening outside of bank accounts. I honestly don't see any government using mainstream crypto blockchain to introduce their own stablecoins ever!

doomloop

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Quote from: Guessti on December 05, 2022, 10:43:18 PM

Governments issue money to banks, and look what happens. They create paper money that ends up in the hands of who knows.

Them allowing stablecoins to be tied with money a bank "has" just means the next phase is coming.

They will issue them on blockchains directly, just watch. Wink

Now if they issue money to banks, we all can see whats going on. <3

I think it is the banks which issue money but the government are only ordering them if how much they will need to print. If some of them are corrupt then some of the money will fall in the wrong hands or will be misused. On the other hand, stable coin being tied with the actual money is I think a good idea because people are doubting stable coins before thinking that it wasn't backed by anything.

With the help of blockchain, it's now possible to see their transactions but don't be happy just yet. Don't forget that they won't issue it on traditional blockchains and we don't even know if it's possible. They will create their own so I think manipulations are still possible there.

TastyChillySauce00

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Quote from: Guessti on December 05, 2022, 10:30:56 PM

It just doesn't make sense to have a stable coin "linked" to a bank somewhere. Defeats the real purpose of crypto and Bitcoin in general and then who trusts this auditor?

It makes sense to have it. It must be a part for the future development of crypto. it doesn't matter how hard you are trying to leave from the domination by the government but you will always be following what regulated by them. it can be said that if this time the decentralization and centralization will be co exist. The auditors will be coming from the regulator's side. Regulators will be trusting the auditors.

Quote from: Guessti on December 05, 2022, 10:30:56 PM

FULLY digital dollar coming to a block chain near you!

No doubt. The physical money will become old and people will prefer to have balance in their wallet that can be spent anytime. You can't avoid it. You shall follow that.

Rikafip

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Quote from: retreat on December 06, 2022, 09:55:50 AM

it is unlikely that central banks will launch their digital currency on a blockchain platform because they need complete control over their cryptocurrency and that cannot be achieved if they use blockchain technology.

Of course they can, as long as they control the chain. For example, the way CZ controls Binance Smart Chain the government could control their own. Just because there is a blockchain, doesn't mean that it can't be controlled by one entity.

@OP No, governments won't issue stablecoins on existing main stream blockchains. Well, not unless they take control over it. After all, they won't even issue stablecoins but CBDC instead.

retreat

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it is unlikely that central banks will launch their digital currency on a blockchain platform because they need complete control over their cryptocurrency and that cannot be achieved if they use blockchain technology.

central banks also don't want their digital currency to be confused with cryptocurrency, instead they use their own technology and they claim that it is more secure for users and they call this digital currency as an alternative to cryptocurrency (I almost laugh hearing this). moreover, the government does not seem to fully believe in blockchain technology and is reluctant to use it perhaps in the next few years.

bittraffic

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Quote from: Fundamentals Of on December 05, 2022, 11:51:15 PM

Quote from: Guessti on December 05, 2022, 10:43:18 PM

Quote from: Fundamentals Of on December 05, 2022, 10:41:56 PM

Why do you think the government would issue their currency on a blockchain they don't own? This is almost impossible to happen for many reasons. But first off, the government needs the power to control the money. So using a network they don't own and control means they will lose that power. The government will always control the finances. Otherwise, they're powerless. Another reason is that the goal of Bitcoin and the goal of the government are not really compatible.

Governments issue money to banks, and look what happens. They create paper money that ends up in the hands of who knows.

Them allowing stablecoins to be tied with money a bank "has" just means the next phase is coming.

They will issue them on blockchains directly, just watch. Wink

Now if they issue money to banks, we all can see whats going on. <3

They will issue money using blockchain in the future. That is expected to happen. That's what CBDCs are all about. But we should not be talking about Bitcoin's permissionless blockchain or Ethereum's blockchain. They won't issue money using those blockchains because they are not blockchains that the government can control. They will definitely be using private blockchains, their own blockchains that themselves have the authority to control. So let's forget about the government using existing blockchains for their currencies. That's not possible.

The adoption of this CBDC with a new blockchain might not be massive since there is no user base yet. It could be a reason why they were suing some blockchain to gain control of it like the XRP.

With Eth, the SEC may have control over it after all it's now a Security. and they could easily make users trade with this stablecoin. Just my theory.

Fundamentals Of

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Quote from: Guessti on December 05, 2022, 10:43:18 PM

Quote from: Fundamentals Of on December 05, 2022, 10:41:56 PM

Why do you think the government would issue their currency on a blockchain they don't own? This is almost impossible to happen for many reasons. But first off, the government needs the power to control the money. So using a network they don't own and control means they will lose that power. The government will always control the finances. Otherwise, they're powerless. Another reason is that the goal of Bitcoin and the goal of the government are not really compatible.

Governments issue money to banks, and look what happens. They create paper money that ends up in the hands of who knows.

Them allowing stablecoins to be tied with money a bank "has" just means the next phase is coming.

They will issue them on blockchains directly, just watch. Wink

Now if they issue money to banks, we all can see whats going on. <3

They will issue money using blockchain in the future. That is expected to happen. That's what CBDCs are all about. But we should not be talking about Bitcoin's permissionless blockchain or Ethereum's blockchain. They won't issue money using those blockchains because they are not blockchains that the government can control. They will definitely be using private blockchains, their own blockchains that themselves have the authority to control. So let's forget about the government using existing blockchains for their currencies. That's not possible.

Guessti

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Quote from: Fundamentals Of on December 05, 2022, 10:41:56 PM

Why do you think the government would issue their currency on a blockchain they don't own? This is almost impossible to happen for many reasons. But first off, the government needs the power to control the money. So using a network they don't own and control means they will lose that power. The government will always control the finances. Otherwise, they're powerless. Another reason is that the goal of Bitcoin and the goal of the government are not really compatible.

Governments issue money to banks, and look what happens. They create paper money that ends up in the hands of who knows.

Them allowing stablecoins to be tied with money a bank "has" just means the next phase is coming.

They will issue them on blockchains directly, just watch. Wink

Now if they issue money to banks, we all can see whats going on. <3

Guessti

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Quote from: GreatArkansas on December 05, 2022, 10:39:51 PM

It's centralized I think if they will just digitalize our fiat currencies like US Dollar.
Stablecoins now are pegged with 1:1 from fiat currency (I hope so). So the issue here is still being centralized and it is really far with Bitcoin.
So for me, I rather use Bitcoin and that is better to use globally. Bitcoin is already here, no need to use any others.

Just saying, government issued stablecoins is the answer to the audit issues.

We the people can clearly audit any minted coins the government creates, we can't so much with the banking system and paper cash.

Stablecoins are here to stay, even though I'm not a big fan of them.

If we must have them, then watch--governments will start to issue them on blockchains because they will continue failing in trying to create own blockchain. This is the middle ground for crypto. To host government issued money on decentralized blockchains.

Fundamentals Of

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Why do you think the government would issue their currency on a blockchain they don't own? This is almost impossible to happen for many reasons. But first off, the government needs the power to control the money. So using a network they don't own and control means they will lose that power. The government will always control the finances. Otherwise, they're powerless. Another reason is that the goal of Bitcoin and the goal of the government are not really compatible.

GreatArkansas

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It's centralized I think if they will just digitalize our fiat currencies like US Dollar.
Stablecoins now are pegged with 1:1 from fiat currency (I hope so). So the issue here is still being centralized and it is really far with Bitcoin.
So for me, I rather use Bitcoin and that is better to use globally. Bitcoin is already here, no need to use any others.

Guessti

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Using existing blockchains such as Ethereum and maybe one day Bitcoin they will bypass the banking systems completely and create a fully digital form of the dollar, hosted on blockchains.

Bitcoin better get ready to support more functions, though moving at a snails pace you can little by little do more with Bitcoin than people know. Wink

China failed at creating a global digital currency, they didn't use the blockchain and its centralized.

Sure, we hate printing of money, but at least we can more actively see the MINTERS of USDs and what happens to that money.

Physical cash is a MASSIVE waste of power and resources. From the materials its made out of, to the machines that create it, to the endless agents who have to find counterfeiters, to the banks hosting money on centralized ledgers, the list just goes on and on.

It just doesn't make sense to have a stable coin "linked" to a bank somewhere. Defeats the real purpose of crypto and Bitcoin in general and then who trusts this auditor?

FULLY digital dollar coming to a block chain near you!

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