US Treasury Says Stablecoins Should Be Replaced by a CBDC

zasad@

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Quote from: Helena Yu on November 08, 2024, 02:31:56 AM

This is what I've been thinking after CBDC comes up, stablecoins is actually their biggest enemy.

But, without The US treasury to ban/attack stablecoins, I think people by themselves will choose CBDC over stablecoins because it's backed by government.

The bad thing is people who live outside US or country where it didn't accept USD, but they're want to hold USD. The best way is holding the stablecoin version because the rates in banks and money changer is bad, banks also charge few USD per month for holding foreign currencies.

CBDCs in each country will of course be regulated differently. In Russia, for example, CBDC will have a limit, and more than a certain amount cannot be kept on the account, and it is impossible to open a second or third account for one citizen.
Further, CBDC has such restrictions that the central bank may prohibit you from certain operations or purchase of goods with certain codes. I can name many more differences, but in my country I would rather choose USDT, DAI, USDC instead of CBDC.

Z-tight

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The U.S. cbdc cannot replace stablecoins, it is easy for anyone in any part of the world to buy stablecoins, all they need is an exchange to perform the trade, stablecoins are also very important for crypto traders and for people who want to temporarily convert their volatile crypto to something stable. There is a difference between the two currencies and i don't think one can directly replace the other.

Since Tether for example is holding most of their reserves in the U.S. treasury bills, it is a good one for the U.S. dollar and the U.S. economy, so i don't know why the treasury department want stablecoins replaced.

Helena Yu

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This is what I've been thinking after CBDC comes up, stablecoins is actually their biggest enemy.

But, without The US treasury to ban/attack stablecoins, I think people by themselves will choose CBDC over stablecoins because it's backed by government.

The bad thing is people who live outside US or country where it didn't accept USD, but they're want to hold USD. The best way is holding the stablecoin version because the rates in banks and money changer is bad, banks also charge few USD per month for holding foreign currencies.

zasad@

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I'll post my comment. This kind of news I usually classify as information warfare, but it is interesting to watch. The main stablecoins USDT, USDC keep their reserves 85% in US treasuries, and everyone is happy with that. This is much better for the American economy, and if something happens and the steiblcoins lose their peg to the dollar, the American government will not bear any responsibility. It's perfect. And to keep companies from getting cocky, there should be competition in this market.

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YOSHIE

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Quote from: zasad@ on November 05, 2024, 05:39:08 AM

While many stablecoin advocates have argued that U.S. dollar-backed stablecoins bolster the dollar’s strength by increasing demand for T-bills, the Treasury appears unconvinced. "

If I'm not mistaken, there are 193 countries in the world, almost all countries use stablecoins such as (USDT), (DAI), USDC (USDC), and others, only 11 countries have adopted a Central Bank currency (CBDC), Legally it is not easy to eliminate all existing stablecoins and make them one, namely (CBDC), it is not an easy matter and it is not easy to get support to make one and the others disappear.

I think stablecoins have now gained a lot of support as a single dollar, fiat currency combination asset in various countries, my understanding is that even though the US Treasury plans to make all stablecoins (CBDC), The idea came out while sitting in a rocking chair, but doing it was not as easy as they imagined. The US Treasury Department wants all crypto assets Bitcoin, Ethereum, BNB to be under their control, unfortunately it's all just a dream.

avikz

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US treasury will someday say that Bitcoin should be replaced by the cryptocurrency created by Themselves. Does it matter! They can say whatever they want to buy there's no requirement for the rest of the world to consider with even slightest seriousness.

Stablecoins have become popular due to their own merit and ease of use in the crypto world. That can never be replaced by any CBDCs, ever. US government may want to ban these stablecoins but that's highly unlikely to happen!

zasad@

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https://decrypt.co/289255/us-treasury-cbdc-replace-stablecoins

"The U.S. Treasury Department is concerned about the growth of the stablecoin

“In a similar manner to how privately-issued ‘wildcat’ currencies were replaced by government-backed central currencies in the late-1800s, Central Bank Digital Currencies (CBDC) will likely need to replace stablecoins as the primary form of digital currency underpinning tokenized transactions,” the report, which was prepared by the Treasury’s Office of Debt Management, said.

Stablecoins dominated much of the 132 page report on the state of the Treasury’s finances in Q4 2024. Much was made of the significant amount of U.S. Treasuries, aka T-bills, that have been bought up by stablecoin issuers such as Tether and Circle. The Treasury estimates that $120 billion worth of T-bills have been purchased to serve as yield-bearing stablecoin collateral. The majority of that sum—nearly $81 billion—has been purchased by Tether, the company behind the crypto market’s largest stablecoin, USDT.

While many stablecoin advocates have argued that U.S. dollar-backed stablecoins bolster the dollar’s strength by increasing demand for T-bills, the Treasury appears unconvinced. "

Topic: US Treasury Says Stablecoins Should Be Replaced by a CBDC (Read 107 times)