Topic: Stable coin - a threat to the international monetary system and bitcoin - page 2. (Read 260 times)

You are delusional.

Stablecoins? Really? You have not the slightest idea what you are saying. "Stablecoins" are backed in vapor, a bomb waiting to detonate. Why? Because like State backed Fiat, it depends on a (human) promise, by whoever manage them, and not code, like Bitcoin. Therefore, it takes a human mistake, or intention for it to break into pieces, just like fiat.

"Stablecoins" are as bad (if not more) than conventional State backed fiats. You don't get it, deluded by the apparent idea that all coins should magically be pegged to each other, because you are too lazy to deal with fluctuations (free market). But, you fail to realize that your fantasy can and will break when you least expect it, and by then it will be too late. Yes, just like fiat.

Furthermore, "stablecoins" practice fractional reserve. If you don't even know what that is, you should abstain from making these absurd claims.

Bitcoin has nothing to worry about these "stablecoins", they are but a passing fad, perhaps a tool to use in exchanges by traders at most. No one will give up their USD for fakeUSD "we promise to peg it to USD" tokens that don't even have their own blockchain.

If those altcoins are able to mess a bit the fiats, so be it. Bitcoin doesn't care, its following its code not depending on the whims of individuals or institutions.

All fiats are inflationary and these are pegged to them, therefore they are also all inflationary. The worst of both worlds, the benefits of neither.

It is also my hunch that if not with this Libra Project, stable coins are not going to become the talk among international banks, their associations and their fronts-- the governments. But I am also thinking that due to this celebrated project and the "threat" that it accordingly brings to them and the old traditional system they are aggressively keeping, they are now calling for a digital currency of their own.^[1] This may not really be progress at all but this is a sign of them following the trend set by cryptocurrency. This might be the beginning of something interesting.

[1] https://www.coindesk.com/us-congressmen-ask-fed-to-consider-developing-national-digital-currency


Nobody's threatened. Bitcoin is not and will never be threatened by any altcoin, especially by those that are merely representing fiat.

If they're worried, one of the reasons is probably because there are lots of stablecoin 'supplier'. That would bring you another question, is the fiat that's backing the coins real or fake? Tether has been accused of manipulating their data, which is why a bank would probably do it themselves to prevent such thing from happening, or to do that on their own.

And btw, have you read the report till the end?

This is the latest report of the G7 countries working group and the Bank for International Settlements regarding stable coins and bitcoins. In general, for the first time I see such a negative assessment regarding stable coins, including bitcoins. It seems that banks are concerned about the increasing role of stable coins in financial relations. Most likely, this is just the subjective opinion of the members of this group.

if a stable coin is truly backed by fiat 1:1 there is no threat to anything or anyone. it is going to be working just like other online payment processors such as PayPal, if you think about it PayPal is also a "stable coin" without the blockchain part! the only fear they have which they are calling "threat" is lack of regulations and compliance with baking laws.


first of all this is not about "stable coins" it is mostly about Libra!
secondly it is not going to "mainstream", this is just drama.
and finally you are missing the most important difference: centralization

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

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.