Topic: The Doom of the Stablecoin Industry? - page 3. (Read 1501 times)

The normal response of a conventional system is almost equal to that of a stable coin. Previously many people were worried about using cryptocurrency because of its high volatility, but with the presence of stable coin it can be overcome so that cryptocurrency can be an effective payment alternative.
The adoption of cryptocurrency is increasingly widespread and this cannot be stopped just like that. Although there are many pros and cons, cryptocurrency is a very good development to overcome various problems.

It is yet to be seen, do remember btc and other cryptocurrencies were banned in a lot of countries a couple years ago but they were still traded as normal, most of the countries now have developed pro crypto rules and i think stablecoins will also stay it is just a matter of time when governments will understand them.

It's possible to ban centralized stablecoins by penalizing the issuer. But it's not feasible to do so on decentralized stablecoins like DAI or bitUSD, because they're not issued by a single entity. The best thing governments can do is impose heavy-handed regulation on centralized stablecoins if they allow it to be used by people in the mainstream world. This would be much of a concern to the stablecoin issuer, than the end user. I think that with greater regulations on the stablecoin industry, the lesser scams or fraud will exist in the crypto space. It'll be disastrous for the crypto market if stablecoins cease to exist as most cryptocurrencies depend on them for liquidity. Some say that Tether (USDT) largely contributed towards Bitcoin's astronomical rise in price back in 2017. If it ends being "banned" by governments worldwide, the entire crypto market will experience a massive downfall in price like never before.

Nonetheless, it's not surprising to see central banks suggesting governments worldwide to act against stablecoins since they see crypto as a threat to the existent monetary system. These entities don't want people to use an alternative payment system that's outside of their scope. They'd want something that can be easily controlled and manipulated at will. Which is why, they'll do anything to try to stop the crypto revolution. Their efforts will be in vain, thanks to the decentralized and open source nature of the Blockchain space. Just my thoughts

I wonder why they wants to prohibit stable crypto coins. Stable coins are good, there is no manipulation price, it is stable.
Then i guess they don't want peoples adopting cryptocurrency and no longer using real money on banks anymore.
Crypto community must keep decentralized to support crypto adoption, so we can independently using crypto coins without any centralized party prohibit the community.

It looks like that crypto become a thread nowadays.  Because it help people's economy in easy way.  It already happen that stablecoins influence people' life easily and they accept it without worry.  Maybe people get bore with the bank central's system.  It depends on the government.  They can not prohibit digital coin and stable coin because they become people need.

Stable coins are also digital coins and I don't see them being banned if the rest of crypto won't be banned. Only thing is that strict regulations may be imposed on them.

The final decision lies on the governments themselves. I believe that they'll have success taking down centralized stablecoins. But they'll have a hard time trying to do the same with decentralized stablecoins like DAI and bitUSD. Central banks have seen crypto more as a threat lately because they prove to be an "exit route" for the currently deteriorating economy. They want to stay in control of people's money no matter what. An alternative payment system which is outside of the scope of a central authority, goes against what banks have established in the first place. Eventually, centralized stablecoins will have to comply with heavy-handed regulations or be left out of the game. There's no reason to worry about a stablecoin ban harming the entire crypto space, since it was designed to be completely independent from the world's monetary system.

Long before stablecoins even existed, Bitcoin and other cryptocurrencies performed well within the mainstream world. I know that volatility reduces one's spending power in terms of Fiat, but that's not an issue when using crypto directly for daily payments. Stablecoins are helpful when you want the convenience of Fiat with the power of Blockchain technology. If they'd cease to exist, then you'd just cash out your crypto to real Fiat at any time. I believe that central banks are just giving these suggestions to governments worldwide to spread FUD within the crypto/Blockchain space. No matter what their efforts may be, they'll never be able to take down the industry in its entirety because of its decentralized and censorship-resistant nature. Just my thoughts

Too many stablecoins now, spreading out liquidity in a bad way

For conventional financial systems, this is like a threat indeed. Moreover, stable coins offer the stability that is similar to fiat or the price that is the benchmark, with a combination of transparency, privacy, low cost, fast processing, which is in cryptocurrency. So that people who are afraid of cryptocurrency volatility can still enjoy crypto with very little volatility using stable coins. That is why stable coins are very effective as an alternative payment.

Those enacting this rule, are they actually in charge of the entire world economy because I am surprised that their rule will now make Stablecoins become so useless. Never, it is not going to happen. Well, that might work in their own jurisdictions and to maybe the exchanges that they have control over. As far as the crypto space is concerned, we are operating a decentralized system, although, most exchanges are centralized, I do not think they will be subject to their dictatorship.
I believe that these people are trying every means possible to be in control, most especially over everything.

Well, i have always had this idea in mind that if cryptocurrencies are ever going to be used for payments stable coins are likely going to be used. i believe this is the reason why the Central Banks want strict laws be made against its issuance because I don't think any trader would want to be caught in the volatile swings of other major cryptocurrencies in this industry.

Stablecoin is important for crypto. If you cannot convert your currency to usd then how will the market operate? That's why stablecoin is needed. But ordinary traders have no knowledge of the stablecoin they currently have. Which of these stablecoin prints they wish, which is really a concern. They have no real usd reserve they only print fake supplies. Because there is no audit. So banning those who are involved with such activity will not be bad.

Not only central banks but also governments do not like stabecoin, the reason is simple because they can not completely manage them.
Perhaps in the future governments will put in place many rules to restrict the development of stabecoin but it is very unlikely that they will completely ban it.

Normally, when we are talking about banks cooperating with governments to ban some crypto, I would 100% be behind crypto, I mean we are all here because we like crypto and how could we say we want governments to ban bitcoin for example, we wouldn't be able to do that and I personally would never want something like that and would be very much against it.

However in this precise scenario maybe the banks and the governments are right? Think about it, these people are creating fake digital currencies and they tell you that it worths 1 dollars each and you believe them, sometimes you can actually withdraw the money for it as well so it looks legit but how about we all try to sell our usdt all together at the same time and see how they bankrupt in a minute, they won't be able to pay them all because they do not have as much dollars to pay you as much as the tether they sold you. Which is why heavy regulations should definitely happen.

Normally, when we are talking about banks cooperating with governments to ban some crypto, I would 100% be behind crypto, I mean we are all here because we like crypto and how could we say we want governments to ban bitcoin for example, we wouldn't be able to do that and I personally would never want something like that and would be very much against it.

However in this precise scenario maybe the banks and the governments are right? Think about it, these people are creating fake digital currencies and they tell you that it worths 1 dollars each and you believe them, sometimes you can actually withdraw the money for it as well so it looks legit but how about we all try to sell our usdt all together at the same time and see how they bankrupt in a minute, they won't be able to pay them all because they do not have as much dollars to pay you as much as the tether they sold you. Which is why heavy regulations should definitely happen.

I think this article is just a click bait, it makes no sense at all what was describe in it makes no sense. How can government sensor stable coin like DAI for example, it is peg to Eth  price or other cryptos, exchange can decided not to trade them agree but country can not do anything about them. If it is a fiat backed stable coin like USDT and USDC then  they can

This is pretty funny. Half a year ago, these same people spoke about the possibility of full approval of stable coins, and now they complain about their insecurity for banks.
I do not think that they will be able to ban stable assets, it will be ridiculous.
In addition, this can only be done within the framework of certain jurisdictions, although even in this case it is not clear to me how they are going to track the user's trading on the exchange, or they will simply close them.

It up to each country and government to implement on how to control cryptocurrency in general, not just stable coin like USDT. For all I know, government label and category stable coin into cryptocurrency that carries risk even greater than normal cryptocurrency like BTC, ETH,... If you don't trust the fiats then it's the same for stable coin. Instead of backup by a legitimate government, stable coin back up by what? Don't tell me you hoarding stable coin and hodl it like it was a normal cryptocurrency.

I think you should take this as a serious problem. I remember when bitcoin has already threatened by so many countries in the world to be banned but it never happens till this time. Just think about the central bank will need more time to give admission to the possibility for the stable coin to replace fiat in the future.

The only reason for governments are always imposing strict rules and guidelines on every momentary system is, money laundering as it may result in aiding terrorist activities. Governments may think about prohibiting every derivative instrument when they are easily redeemable AND ALSO when they comes with LESS FLUCTUATIONS.

Why governments are not bothering about every other derivative instruments? Because, they are being traded with unlimited fluctuations; they may value $1 today and may value $100 tomorrow and vice versa also true. So, the chances for those derivatives to be used as a momentary system is less which means less chances for being used for money laundering.

But, here the special case of stablecoins is, even it is also a derivative, it may fluctuate +/-5% or hardly +/-10% on day to day basis. If you ignore these fluctuations, then you may assume they are purely stable like fiats. Then they got more chance for being used for money laundering. So, more chances for governments to ban them at any time like how they did with Liberty Reserve payment processor (the prominent payment option in mt.gox).