Topic: Stable coin - a threat to the international monetary system and bitcoin (Read 212 times)
January 01, 2020, 09:00:33 AM
I don't think Stable Coins has anything to do with the competition that currently going on with Bitcoin. These coins have their own way of innovating the world currencies. mostly stable coins are just for holding some digital currency without worrying about some price fall. while bitcoin is for investment where you buy some of it and hold it until its price soar high. These two coins are helping one another at the same time, Like for example when you have enough Bitcoin to sell and want to hold it in stable coins, you can always convert it without directly converting it to fiat. In this way, you don't need to worry about the sudden price change, stable coins are always there to help you.
January 01, 2020, 08:47:08 AM
https://www.bis.org/cpmi/publ/d187.htm
The report of Bank of International Settlements or BIS have found out some alarming negative impacts of the stable coin towards competition policy, financial stability, monetary policy and the international monetary system.
But this issues were not seen as a hindrance but a challenge to overcome thus a meeting with the stablecoin developers and the public sector authorities were called to tackle solutions to such challenges.
Somehow it is annoying to see that stablecoins will be the first to be mainstreamed rather than bitcoin. If they will be successful then bitcoin will be left behind and will only be viewed as a tradable cryptocurrency and can no longer be used as a means of payment due to the presence of stablecoins.
It makes more sense to see Stablecoins being adopted first way before Bitcoin ever will because Bitcoin is too volatile and your ordinary average Joe working class citizen wouldn't know what to do with cryptocurrency.The report of Bank of International Settlements or BIS have found out some alarming negative impacts of the stable coin towards competition policy, financial stability, monetary policy and the international monetary system.
But this issues were not seen as a hindrance but a challenge to overcome thus a meeting with the stablecoin developers and the public sector authorities were called to tackle solutions to such challenges.
Somehow it is annoying to see that stablecoins will be the first to be mainstreamed rather than bitcoin. If they will be successful then bitcoin will be left behind and will only be viewed as a tradable cryptocurrency and can no longer be used as a means of payment due to the presence of stablecoins.
Fiat currency is based upon stability, if my grand mother has $5, by the time she gets to the supermarket, the $5 will still be $5, not $4.97. Stablecoins will thrive in mainstream society, look at what Facebook is doing with project Libra? They're already one foot in the Door!
January 01, 2020, 07:56:18 AM
A threat to the international monetary system and bitcoin Liteblue
October 30, 2019, 08:28:29 PM
It's a pretty well-written article, to be honest.
I'm not sure if stablecoins are better then decentralized coins though (for the general public), it's basically copy-pasting our current financial system into a blockchain-based system, and it's nothing surprising or new.
These threats that are displayed by them, are the same threats that regular fiat currency has - because it is still very similar to it, I reckon the meeting is just going to be them trying to control the coins.
I'm not sure if stablecoins are better then decentralized coins though (for the general public), it's basically copy-pasting our current financial system into a blockchain-based system, and it's nothing surprising or new.
These threats that are displayed by them, are the same threats that regular fiat currency has - because it is still very similar to it, I reckon the meeting is just going to be them trying to control the coins.
October 30, 2019, 06:02:51 PM
Stable coins are like a closed book. I especially wait for Libra to be listed on the market. I wonder how much effect it will create in the sector. Libra can be the biggest enemy of fiat currencies about replacing them in the future.
I don't think Libra is going to lauch. Too much hostility to Zukerberg in both the US and EU. And even Switzerland raised it's eyebrows about Libra being based there (Facebook just announced it without clearing it with the Swiss). This thing is deadder than a dead donkey.
October 30, 2019, 03:39:05 PM
Stable coins are like a closed book. I especially wait for Libra to be listed on the market. I wonder how much effect it will create in the sector. Libra can be the biggest enemy of fiat currencies about replacing them in the future.
October 21, 2019, 04:07:53 PM
I’m always curious to know how a stable coin can f**k up just similar to that fiat money, Nixon took away the gold standard and completely f**k up the dollar, a centralized stable coin, how would they recreate the same phenomenal.
October 21, 2019, 01:32:25 PM
Stablecoin has a unique purpose— its main purpose is to protect traders from crypto volatility. I don't see why they can't exist side by side with Bitcoin/cryptocurrencies. Stablecoins are pegged to fiat currencies, especially dollar. They depend on the centralized value of fiat. Bitcoin and other Cryptocurrencies are independent of fiat.
October 21, 2019, 06:11:02 AM
If cryptocurrency can really become a means for everyday settlements, it is possible only with its stable rate. This role is best suited just stable coins. I think Bitcoin with its high price volatility is perceived by people as a valuable asset in which you can invest for profit, but not as a means for daily payments for goods and services. I think stable coins and Bitcoin have completely different tasks. And for Bitcoin to be considered as a coin for everyday use, its rate must become stable.
October 21, 2019, 06:08:18 AM
it is easy to figure out how false this is. have you ever used a stable coin, or do you know anybody who uses these stable coins for anything EXCEPT trading on exchanges?
you see, they are useless if altcoin day trading wasn't a thing and if altcoin exchanges were capable of adding fiat deposits without needing their users to jump through hoops. it is something that will change in the near future and these stable coins will lose their only usage and die.
you see, they are useless if altcoin day trading wasn't a thing and if altcoin exchanges were capable of adding fiat deposits without needing their users to jump through hoops. it is something that will change in the near future and these stable coins will lose their only usage and die.
October 21, 2019, 03:36:55 AM
https://www.bis.org/cpmi/publ/d187.htm
The report of Bank of International Settlements or BIS have found out some alarming negative impacts of the stable coin towards competition policy, financial stability, monetary policy and the international monetary system.
But this issues were not seen as a hindrance but a challenge to overcome thus a meeting with the stablecoin developers and the public sector authorities were called to tackle solutions to such challenges.
Somehow it is annoying to see that stablecoins will be the first to be mainstreamed rather than bitcoin. If they will be successful then bitcoin will be left behind and will only be viewed as a tradable cryptocurrency and can no longer be used as a means of payment due to the presence of stablecoins.
It's not that surpising to be honest - think to yourself, would the government rather promote a decentralized crypto-currency that they would never be able to control, or should they accept and try and work on a stable option that would likely be able to be controlled by them? It sucks, but the second option is the only option the government will ever pick.The report of Bank of International Settlements or BIS have found out some alarming negative impacts of the stable coin towards competition policy, financial stability, monetary policy and the international monetary system.
But this issues were not seen as a hindrance but a challenge to overcome thus a meeting with the stablecoin developers and the public sector authorities were called to tackle solutions to such challenges.
Somehow it is annoying to see that stablecoins will be the first to be mainstreamed rather than bitcoin. If they will be successful then bitcoin will be left behind and will only be viewed as a tradable cryptocurrency and can no longer be used as a means of payment due to the presence of stablecoins.
I think there are obviously negative impacts we see from stablecoins, they don't really provide anything new to the crypto-sphere and they aren't going to change the world like bitcoin is, just more incorporate blockchain technologies.
Unfortunately, this is the best we can do and we have to settle for small adoption before Bitcoin adoption can be focused on - be happy this is happening, and it might lead to bigger things in the future.
October 21, 2019, 03:27:35 AM
Even if the stablecoins are mainstreamed, bitcoin will still be heavily relevant and well traded. Stablecoins are majorly for payment and holding of fund against a volatile market, but bitcoin serves as a better store of value against inflation. Because of bitcoin volatility, it will be more traded and relevant than stablecoins. Traders stand to gain more from bitcoin than stablecoins.
October 21, 2019, 02:30:49 AM
Somehow it is annoying to see that stablecoins will be the first to be mainstreamed rather than bitcoin. If they will be successful then bitcoin will be left behind and will only be viewed as a tradable cryptocurrency and can no longer be used as a means of payment due to the presence of stablecoins.
The problem here is that will the authorities will allow these stable coins to be regulated as we all know what is going with Libra when they announced their version of stable coin. Bitcoin is a decentralized currency and we need a regulated stable coin to hold our money and i cannot find any coins that can be trusted and hence i usually convert them to USD or EUR depending on the exchange, the banking sector will put pressure on the authorities as they will loose a lot of business if they allow stable currencies being regulated. October 21, 2019, 02:24:21 AM
This is where an analogy between Gold-Fiat and Bitcoin-Stablecoins would be right. Stablecoins are nothing than another try to "digitalize" the fiat currency, but the problems still remain: it is an inflationary currency, probably controlled by a central entity aka governments, etc. So in conclusion what are we really doing here? Trading one bad asset for a somehow better one? - No, thank you. I prefer Bitcoin.
October 21, 2019, 02:20:26 AM
The price of Bitcoin is now zooming up to the stratosphere, making it either a huge speculative bubble or its acceptance as a real currency.
October 21, 2019, 01:36:15 AM
I agree, they have different purposes. Stable coins is much needed in transactions to gain assurance and quality. But the bitcoin is much more faster and easy to use in transactions. It is unprintable and can send digitally without any conflict. So whenever you've given a chance to choose the platform in your transactions, always remember that bitcoin is much easier and faster.
I mostly agree, but bitcoin isn't necessarily faster(not taking into consideration lightning). With an equal fee in the ethereum network(in USD), ETH can be faster though it completely depends on how congested the mempools of both blockchains are. But yea, bitcoin > stablecoins for sure.
October 21, 2019, 01:29:01 AM
They seems to be affected lol 😂,are the banks is the most concerned about this?
But I don’t see any competition about bitcoin and stable coin I think this is just being complicated by banks and other investors that hated or don’t believe in cryptocurrency that’s why it’s being called out but no related at all IMO
But I don’t see any competition about bitcoin and stable coin I think this is just being complicated by banks and other investors that hated or don’t believe in cryptocurrency that’s why it’s being called out but no related at all IMO
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October 21, 2019, 12:59:16 AM
Somehow it is annoying to see that stablecoins will be the first to be mainstreamed rather than bitcoin. If they will be successful then bitcoin will be left behind and will only be viewed as a tradable cryptocurrency and can no longer be used as a means of payment due to the presence of stablecoins.
First of all. Being volatile of Bitcoin is the reason why regulators is against it since it involves great risk for investors. Stable coin is the defense of fiat backer group to abolish bitcoin in the future. But I highly doubt that bitcoin will left behind. Bitcoin already show the potential to have a tremoundous profit for investors and people will never be satisfied for stable coin and will look for something to risk and have a huge profit. In my opinion. Stable coin will just be the way for institutional investors to enter in crypto then buy Bitcoin.
October 21, 2019, 12:54:50 AM
Somehow it is annoying to see that stablecoins will be the first to be mainstreamed rather than bitcoin. If they will be successful then bitcoin will be left behind and will only be viewed as a tradable cryptocurrency and can no longer be used as a means of payment due to the presence of stablecoins.
Bitcoin and stablecoins aren't even in a competition. They have their own purposes. Sure stablecoins are "stable" in price, but it's not a non-correlated asset like bitcoin and gold are; which is one of the main advantages of bitcoin- being unprintable in mass amounts like the fed does with fiat. Stablecoins just makes sense right now because the economy is currently fine in the US.
In the end, bitcoin > stablecoins > bank fiat
I agree, they have different purposes. Stable coins is much needed in transactions to gain assurance and quality. But the bitcoin is much more faster and easy to use in transactions. It is unprintable and can send digitally without any conflict. So whenever you've given a chance to choose the platform in your transactions, always remember that bitcoin is much easier and faster.
October 21, 2019, 12:46:04 AM
Somehow it is annoying to see that stablecoins will be the first to be mainstreamed rather than bitcoin. If they will be successful then bitcoin will be left behind and will only be viewed as a tradable cryptocurrency and can no longer be used as a means of payment due to the presence of stablecoins.
I don't think it's about main streaming them. Perhaps government is looking for a way of controlling the stablecoins which is not vision of bitcoin and other blockchain assets which is decentralizations.I still don't think any stablecoin can be more popular than bitcoin. People who are running away from centralization will always go for bitcoin.
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