Topic: Stablecoins Threats to Global Financial Stability? (Read 138 times)
IMO,it may not change anything economically because they were still backed up by fiat but people will accept stable coin as main stream payment? I don't find any reason to accept them since we already got he fiat money in digital format.
Stablecoins Threats to Global Financial Stability?
It is more like opposite. Global instability is huge threat to all stable coins. If currencies hat back stable coins devalue so will value of stable coins devalue. If that currency get worth nothing so will stable coin be worth nothing.
I believe that stable coins are not a threat in itself, the whole world of banks is concerned that the very rapid development of the crypto industry can shake the whole system, and in every way oppose it, although I believe that this is inevitable
That is what some people are saying. But I don't agree with them as I don't agree with their paranoid arguments. Why should they be afraid of stablecoins when stablecoins are founded on the very price of their own fiat itself? The price of USD falling also means USDT falling. USD dies and USDT also dies.
However, stablecoins such as Libra may really destroy the financial system. But still the fact remains that these coins derive their value from fiat. They share one heart and soul. They kill the system, they kill themselves.
However, stablecoins such as Libra may really destroy the financial system. But still the fact remains that these coins derive their value from fiat. They share one heart and soul. They kill the system, they kill themselves.
I am baffled about this as well. Maybe they are afraid that there will be lots of highly manipulated pump & dumps from the extremely rich people on the unregulated markets affecting the fiat prices because there are not any safeguards in place like in normal Forex? With enough pressure between Libra/other_asset, the weight of it could affect the other asset.
Governments are scared of stablecoins, but in my opinion they are just afraid of losing control. On the other hand, I do not see any trustworthy stablecoin, TUST is centralised, and other stablecoins are not much better.
That is what some people are saying. But I don't agree with them as I don't agree with their paranoid arguments. Why should they be afraid of stablecoins when stablecoins are founded on the very price of their own fiat itself? The price of USD falling also means USDT falling. USD dies and USDT also dies.
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I agree....
The part of cryptocurrencies in the global economy is exaggerated. And stable coins + KYC should not be perceived as cryptocurrency in its purest form.
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However, stablecoins such as Libra may really destroy the financial system. But still the fact remains that these coins derive their value from fiat. They share one heart and soul. They kill the system, they kill themselves.
And this is doubtful However, stablecoins such as Libra may really destroy the financial system. But still the fact remains that these coins derive their value from fiat. They share one heart and soul. They kill the system, they kill themselves.
. To do this, this asset must cover as many areas of life as possible. Do they have plans for this? 
Yes stable coins like Libra Coins can control worldwide money like all will really use this so this is a threat that's why government study this very well before running then another thing think if this have KYC worldwide then many negative things can really happen like some will use your own identity so that's really bad,Moreover i think if the stable coins have limit then this is good then without KYC
I don’t think many people will use libra. Libra has no advantages over bitcoin. in 10-15-20 years, people will understand the whole value of bitcoin and then other coins will not be needed, and even stable coins
That is what some people are saying. But I don't agree with them as I don't agree with their paranoid arguments. Why should they be afraid of stablecoins when stablecoins are founded on the very price of their own fiat itself? The price of USD falling also means USDT falling. USD dies and USDT also dies.
However, stablecoins such as Libra may really destroy the financial system. But still the fact remains that these coins derive their value from fiat. They share one heart and soul. They kill the system, they kill themselves.
However, stablecoins such as Libra may really destroy the financial system. But still the fact remains that these coins derive their value from fiat. They share one heart and soul. They kill the system, they kill themselves.
Now, with this in mind, do you think these regulators are just bluffing us or is there some truth to what they say?
With a job title like 'regulator' you know damn well they're going to find things to regulate, and in my opinion that's a big reason why they're picking on Libra. Another reason is the huge brand associated with it, ie, facebook. The douches sitting in their regulatory thrones in Washington know the coin has the potential to be huge, and you better believe they think it might be a threat to the US dollar. I don't think that would actually be the case, but then again I don't think like some regulatory bureaucrat. This thing is dead in the womb as far as I'm concerned, even though it hasn't been announced officially yet. Look at all the partners who've pulled out faster than disgraced evangelist in a seedy motel room. You think they would be doing that if the project was going anywhere? Nah.
So this can be the reasoning behind why many regulators coming from different countries are making their strong objections to the launch and operation of Libra which is actually another stablecoin and managed centrally by Libra Association. Let's hear more:
Quote
The BBC reported yesterday citing a report published by the G7 that the organization believes stablecoins such as Libra pose a threat to global financial stability. According to the document: "No stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed. Addressing such risks is not necessarily a guarantee of regulatory approval for a stablecoin arrangement." According to the G7, stablecoins with great scalability potential could negatively affect global financial stability if users lose confidence in the coin.
Read more at https://ihodl.com/topnews/2019-10-14/g7-stablecoins-pose-threat-financial-stability/
Though nobody can be sure of the real risks a stablecoin can posed to the global economy as we still have to see Libra go into action while other stablecoins do not have the scope of influence that Libra may have, there is that pervading feeling that the possible risks can be gargantuan and can put the traditional systems and platforms on a spiral and which those in the authority could not allow happening.
Now, with this in mind, do you think these regulators are just bluffing us or is there some truth to what they say? Or, essentially, do you agree, in part or in whole, to this reasoning?
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