The Financial Stability Report Indicates that Stablecoins Poses Potential threat

shinratensei_

legendary

Activity: 3276

Merit: 1029

Leading Crypto Sports Betting & Casino Platform

Quote from: ?? on ??

On this issue, they're not wrong, stablecoins if given the power and been operated by thw wrong set pf organization can turn into something else, we have seen the like of USDT been highly manipulated by the exchange that controls it for their selfish agenda, same fate can be of Libra since Facebook has records of not been transparent and shady in nature.

Not only exchange site but the company itself manipulated its total supply, and each tether is not yet backed by 1 dollar again consider about not all of the coins can be supported by the real dollar. Still, the government is only feeling worried if the party who already issued stable currency can disrupt the financial ecosystem, what they have been saying to give a little insight if the opinion has changed based on what already discovered by their identification. Facebook has enormous resources to do that, and that's why the FED has published it.

A lot of possibilities can happen when it comes to the use of stable coins. It's too early to say that. The implementation of libra is not getting approval by such countries. That means if they have abandoned it. They have agreed with the title of this thread even before facebook announced to start a stable coin called libra.

Fundamentals Of

sr. member

Activity: 2380

Merit: 366

The threat coming from stablecoins must be exaggerated and even misinterpreted. The fiat system should not be threatened by a cryptocurrency that is just another version of itself, an improved one of course but not a totally different one that is too disruptive of its operation. Stablecoins are not really offering something new to the people because they are just another way of using fiat. In other words, stablecoins are really fiat in essence. A USDT, for example, is almost totally the same with a USD.

CjMapope

legendary

Activity: 1820

Merit: 1092

~Full-Time Minter since 2016~

Quote from: Harrydose on November 18, 2019, 06:42:52 AM

The U.S Federal System has published its monthly Financial Stability Report which is devoted to the benefits and dangers related to “Worldwide Stablecoins”.

The central bank recognized the different benefits that stablecoins present as an idea. It was expressed that stablecoins are quicker, less expensive and progressively comprehensive payments could supplement the existing payment systems. The announcements were made based on confounded and inadequately available customary budgetary foundations.

Stablecoin activities like Libra, a result of Facebook, can accomplish cross-fringe developments. Sadly, the framework has a few faults. The powerlessness to change over the equivalent to National Currencies and the loss of trust in pegging the steady coins to customary resources are some among them. This will lead a few holders to sell their stable coins.

Source: TheCoinRepublic

It's interesting to see the powers that be talking about Stablecoins, it seems they are doing better at keeping up to the latest hypes in crypto lately
The only companies/organizations that should be making stablecoins are governments and banks probably, they are just too complicated
The greed of printing your own money thru one, mixed with the difficulty of keeping them pegged makes them overall way too sketchy mostly right now imo : /

xiboothrezi

sr. member

Activity: 1246

Merit: 285

Quote from: cudora on November 18, 2019, 01:23:14 PM

Cannot even understand why so many people are investing in stable coins. A lot of people do not even get that Tether is printing air and that 30 percent of all their tokens are not even backed by real assets, but who cares.

In cryptocurrency, not everything is only related to investment, there are some people who only want to use it as a secure transaction tool at a low cost, there are also those who want to make it as a payment tool such as fiat. From this came the idea of making Stablecoin.

Quote from: BitHodler on November 18, 2019, 02:16:23 PM

Investing in stablecoins isn't what's happening because people don't consider it to be like that. It's purely a tool people use for arbitrage trading or to hedge a looming drop in the price, such as what we experience today.
People don't care about Tether being backed by dollars or not, all they care about is the utility Tether provides, which admittedly is of great use to people in more ways than one. It's the only crypto coin that is actually being used as intended.

That's the right function, the right use will bring a positive impact and comfort for the user. Most beginners assume stablecoin has no function because its value tends not to change because that is the main goal of high anti-volatility so that the increase in utility of the payment system can be fulfilled.

BitHodler

legendary

Activity: 1526

Merit: 1179

Quote from: cudora on November 18, 2019, 01:23:14 PM

Cannot even understand why so many people are investing in stable coins. A lot of people do not even get that Tether is printing air and that 30 percent of all their tokens are not even backed by real assets, but who cares.

Investing in stablecoins isn't what's happening because people don't consider it to be like that. It's purely a tool people use for arbitrage trading or to hedge a looming drop in the price, such as what we experience today.

People don't care about Tether being backed by dollars or not, all they care about is the utility Tether provides, which admittedly is of great use to people in more ways than one. It's the only crypto coin that is actually being used as intended.

cudora

copper member

Activity: 336

Merit: 3

Cryptoknowmics - World's First Decentralized Media

Cannot even understand why so many people are investing in stable coins. A lot of people do not even get that Tether is printing air and that 30 percent of all their tokens are not even backed by real assets, but who cares.

aramine

jr. member

Activity: 107

Merit: 5

To me the big risk possed by stable coins is not transparent governance which make them to be an asset class that the public cannot actually check the worth of the fiat currency backing it. Tether confessed at a time that they d have the equivalent amount of USD to their USDT.

fuer44

sr. member

Activity: 1652

Merit: 262

SOL.BIOKRIPT.COM

indeed payments using crypto can be more effective, fast and impressive. coupled with the idea of the Libra stable coin. but there are some important points that must be considered if indeed it will be the main online payment. namely fees that are likely to increase and occur pending transactions when often used if only using one coin. I think it's okay to use other coins that are more volatile, because even if prices go up or down, in addition to transactions, we also have investment assets.

poptok1

hero member

Activity: 1638

Merit: 756

Bobby Fischer was right

"nomen omen" as they say, names do matter. In an upside-down world, everything is subverted.
If something is called stable, we already should suspect, it is in exact opposition to its name.
Fiats can bottom up any minute, only quantity is protecting them from attacks and speculations. In case of global fade of trust in those financial markets, crash will happen and "stables" will become an embodiment of fluctuation.
Bitcoin however seems very, yet partially unstable, the moment you look at a broader picture... you will know.

Mammothcoin

full member

Activity: 336

Merit: 101

KoinPro

Citing 'design flaw and lack of governance' as potential reasons for the lack of transparency in the effective pegging of the value of the stablecoin to its fiat counterpart is a 'terrible excuse' to use as a reason for stablecoins being a threat to financial stability. The benefits of stablecoins greatly outweigh the potential demerits which may exist.

amazigh15

member

Activity: 224

Merit: 71

yes, there has been a lot of history with the loin, and most exchanges have the supreme dollar to replace it with stable parts unfortunately it will have a negative effect on the market

jacafbiz

hero member

Activity: 2128

Merit: 530

PredX - AI-Powered Prediction Market

I don't know why people expect something else, they are going to highlight the merit and demerit of using it, we all know that the backing or pegging is an issue with Tether and alot of questions has been asked about this, also I don't expect FED to just give Libra a free pass for something that has potential of replacing FED functions if done right

Harrydose

newbie

Activity: 145

Merit: 0

The U.S Federal System has published its monthly Financial Stability Report which is devoted to the benefits and dangers related to “Worldwide Stablecoins”.

The central bank recognized the different benefits that stablecoins present as an idea. It was expressed that stablecoins are quicker, less expensive and progressively comprehensive payments could supplement the existing payment systems. The announcements were made based on confounded and inadequately available customary budgetary foundations.

Stablecoin activities like Libra, a result of Facebook, can accomplish cross-fringe developments. Sadly, the framework has a few faults. The powerlessness to change over the equivalent to National Currencies and the loss of trust in pegging the steady coins to customary resources are some among them. This will lead a few holders to sell their stable coins.

Source: TheCoinRepublic

Topic: The Financial Stability Report Indicates that Stablecoins Poses Potential threat (Read 181 times)