Topic: The Doom of the Stablecoin Industry? (Read 1501 times)

This is true if you talk about minority that is using bitcoin.
It easy to pick one person like they did in Minneapolis 4 (armed) : 1 (unarmed)
In case that would be a majority using bitcoin or other currencies than scenario would not be possible either.

the government cannot stop bitcoin, but the government can stop the person who wants to use bitcoin. if people will be afraid to go to jail for using bitcoin then the popularity of cryptocurrency will fall down

Many governments are simply afraid that stablecoins will turn out to replace traditional Fiat currencies we know and love today. They don't want to lose control over the world's economy, after all. People who use stablecoins get the "best of both worlds". Blockchain technology promises immutability, and most of all, censorship resistance. This allows anyone to gain full control of their funds without third-party intervention. Combining this, and the stability of real-world currencies, makes stablecoins a huge contender of the existing monetary system. I think that governments will either enforce heavy regulation on centralized stablecoins or simply ban their usage. Decentralized stablecoins like DAI and bitUSD will remain "untouched" since they're not issued by a single entity.

One thing for sure is that governments became concerned about stablecoins right after the announcement of Facebook's Libra. If it wasn't for that, they wouldn't have been too worried about it. There has been so much opposition from mainstream governments against Facebook's planned stablecoin for the world. My guess is that they'll never allow Libra to become a reality, as they'll lose control over the world's monetary system. Even if they did, Libra would be heavily regulated and monitored which would greatly defeat the purpose of crypto/Blockchain technology. In the end, centralized stablecoins will see their "doom" while decentralized ones will survive for a very long time. As long as people support these types of currencies, they won't be going anywhere. Just my opinion

We do not exactly know what will happen when the regulations come. Nobody knows, how goverments will clasify cryptocurrencies, as a form of money? Then all cryptocurrencies will be illegal because creating own money is illegal! And here is Bitcoin, thanks decentralization you can´t stop it and send someone to the prison. 

As world leaders understood what a global stablecoin could achieve, they are afraid of the consequences as these coins takes over their individual money scams that are making them extra money. China's push to digital yuan is another desperate move to replace USD as a global trading currency as it gives US a great power of leverage. Facebook's Libra's intention too were the same. The leaders would do everything to stop a global currency but in the end they'd agree upon a neutral one as no one would win the ultimate coin war.

Banning stable coins, even their own like the Digital Yuan? I can´t see that happen. As soon as they see a chance of how to make money with cryptos they will be very welcoming and open to free the markets from restrictions so everybody, mostly them, can have a piece of the cake. The stablecoins will be necessary to trade, since I´m certain that the whole world will not agree to one single coin, like a "Globo" or whatever else. They might work hard against the Libra coin because this one has the backup to overturn the national currency and in worst case replace it make a private company responsible for the currency stability in the country.  Not the best solution, and the FED will agree to that

I honestly don't think that these banks will be interested into making their own stablecoins considering the user of crypto sitll not massive and even if there's profit in it, it's just a pocket money for them. Most of stablecoins until now are owned by private company which reserve their fund in bank, in other word, the banks actually indirectly participating in the existence of these so called stablecoins.

That's being too far to be a reality. China is the only country that wanna follow the revolution on the digital economic industries but it's really different with another country that thing their traditional economy still made them all confidence. As long as the stable coin if fully audited and it has been getting approval from the local authorities and it will be fine.

In the near future, the number of stable coins will even increase. However, these will be stable coins of the central banks of states, that is, their digitized currencies. The spread of coronavirus and the need to disinfect paper money is pushing states to digitize their national currencies. States and international financial organizations express concern only for stable coins of various private and other commercial structures, the circulation of which is really associated with a certain risk. Therefore, in general, there is no threat to the existence of stable coins.

I do not think so. Stablecoin can still function as it should in the cryptocurrency ecosystem with or without government support.
We must indeed realize that there is still a gap between cryptocurrency and government, full of pros and cons. But we don't need to worry, just simply understand and obey government rules. The whole world knows the potential of cryptocurrency, so not all governments strictly prohibit, there are certain rules that limit. So we make the best use of it.
Stablecoin continues to function with its unique niche, providing security for those who are still adapting to volatility.

That's certainly true, mate. If governments ban stablecoins from widespread use, people could simply resort to Fiat directly via a bank account. Stablecoins are only there to provide users the "best of both worlds". Sometimes you'd like to have the stability of Fiat with the security/reliability of Blockchain. With a stablecoin, it's possible to achieve this. While the market is saturated of both centralized and decentralized stablecoins, there's a wide variety of options to choose from.

For the sake of the stablecoin industry's growth, it's best that governments regulate centralized stablecoins more thoroughly. Instead of banning them, governments could work together with crypto companies and startups in order to make the world a better place. One of the good things centralized stablecoins have over decentralized ones is that they're backed by real-world assets. Most (if not all) centralized stablecoins are backed by Fiat reserves on a real bank. That's not the case with decentralized stablecoins, since they're backed by algorithms more than anything else. Stablecoins of this type (like DAI and bitUSD) have a higher risk of losing their stability in the long term. Consider NuBits (USNBT) which was once a decentralized stablecoin with a price of $1 USD. It's now dead lost, worth cents on the market.

Nonetheless, the fate of stablecoins will depend on how companies and startups cooperate with governments worldwide. As long as there is a regulatory-friendly environment for centralized stablecoins, there should be nothing to worry about. Ultimately, people like you and me will end up using decentralized alternatives if governments decide to ban centralized stablecoins in their entirety. A stablecoin ban will make little to no difference, if there's a way to trade crypto against Fiat in the mainstream world. Just my opinion

Lol, how does banning stablecoins have anything to do with the whole cryptocurrency market.
Yes, I do know that I wouldn't like them to ban the stablecoins, but if they do, I don't think it's going to have any effect on Bitcoin, for example: causing the price to fall. The only thing is that there is going to be a reduction in the market total market cap, but it's not going to reduce the price of others.

I am not really going to blame them, they are trying to save themselves from losing relevance, because cryptocurrency seems to be replacing everything this time around and they don't want to lose it to cryptocurrency. They might not worry about volatile cryptocurrencies, because they feel that people will be afraid to adopt the unstable coins.

Not close to happening though. What about USD, they can't ban it.  If its really going to be ban, they will likely face the most decentralize stablecoin which they couldn't control anymore such as the DAI.

Its best to just leave it alone, its not just USD that has stablecoin, we do have Yuan and KRW, INR and etc. Are they all going to end up getting ban too?

 

Stablecoins are easier to ban than crypto because the issuers are known. Trust me if they ever manage to sue and ban and imprison Tether owners then every exchange that is regulated will delist and remove USDT. And then you can guarantee it will lose the USD peg in real value.

As long as it has created by human and the possibility for the government to trace the creator of the decentralized apps or something else will always there. You must take a look at how SEC was tracking the creator of etherdelta even if that was never being published. Government hates bitcoin caused by the potential to disrupt the traditional economy.
This stable coin will exist forever.

I will wait and watch how this is going to be possible for the government, something decentralized can't be controlled by other power organizations, is this not one of the reasons why government hates Bitcoin and privacy coins till date?

Even if at all they are able to ban stable coin which am still wondering how they are going to succeed in that aspect,  people will result in using fiat most, stable coin are some how playing the role of fiat in a digital way, and since almost all crypto users prefer to use stable coin I guess the government are not happy about it, still looking for a way to inflict pain on crypto since they can't outright ban it, and knowing the importance of it to crypto community it becomes their point of target.

They will make their own crypto currency as a solution. They know they ban stable coin didn't give any profit for them.

Take a look to Chinese governement who create remindi based on blockchain system, their intention is to ban stable coin like USDT, TUSD and etc that being used by their citizen.

It will be different when reminbi has been using by their citizen. The governement will try to get punished for their citizen who using it. And it will make their money fiat will be used by most people in this world.

Exactly, the government has got other things to worry about and cryptocurrency is the least of them. Moreover they are aware of things going around with crypto, they are no fools running a country even if many people think that way.

Fact that so many casinos are running on crypto and government does not do anything to stop them means that they are not willing to crackdown on them. The people who are actually getting punished are the money laundering cases.

For stablecoins, I dont see anything good except that they can be a good intermediary position while trading. Like when you sell Coin1 (hypotheical) for USDT, you get some USDT, but your target is another coin, say Coin2 but since you sold Coin1 at bull market, Coin2's price is high and so just hold USDT for now and buy Coin2 when bear market starts. That way you gain a multiplied amount of Coin2 than if you would have bought just after selling Coin1.

That is so true. I don't think the government or banks can dictate the fate of those decentralized stablecoins. However, the lifespan of those centralized stablecoins will not easily vanished as they can't be ban easily. They need to undergo a lot of talks, hearings and discussions because a government can totally terminate its presence. And I don't think that will happen very easily. They might end up utilizing stablecoins once they fully understand the benefits of using stablecoins.