Will governments destroy stablecoins in the long term?

pieppiep

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Quote from: TastyChillySauce00 on May 15, 2021, 12:26:14 AM

Quote from: tanjiran on May 06, 2021, 06:28:34 PM

the question is, why should the government destroy the stable coin?

if the government wants it then the government only needs to make a ban regarding the use of cryptocurrency in its country, that's over. without needing to destroy anything, it doesn't seem classy anyways. The decentralized network is seen as a threat because the government cannot fully control and supervise, while for those who aspire to freedom, decentralization is a solution.

Stablecoin could potentially become a threat for government's CBDC and there's some countries out there which has rather controlling government and that kind of countries have the potential of banning stablecoins simply because they can.
But, I doubt any country gonna ban stablecoin in the long run, after all these stablecoin legally established and there's private company behind it who gets taxed by the government each year off their profit.
Maybe if government want to escalate into banning all crypto except the government's then it could happen.

Of course no one dared to do that because the supply of stable coins which were very large and easy to reproduce made it terrible because if you dared to fight against a stable coin it would only destroy the nation because there would definitely be inflation on a very large scale.

magneto

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100%.

Stablecoins are sort of stuck in no mans land in my opinion. As a form of fiat currency, it doesn't offer any interest, nor does it provide the deposit guarantees that regular savings accounts do.

As a form of crypto, it's completely decentralised and won't really be congruent with the whole DeFi movement. It's clear that right now, stablecoins are allowing a loophole that the government will crack down on increasingly in the future, and animosity from within the crypto community will only continue to grow as well.

hari9981

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Quote from: laohe628 on May 29, 2021, 03:05:06 AM

Quote from: hari9981 on May 28, 2021, 06:16:18 PM

I dont get it the reason why governments do that thing, isnt stable coins help government to move the macro economy on the good way?
I predict they wont destroy it, they will rules it and make some tax from it, its sound more rational for me.

I think collecting taxes is win-win outcome, on the one hand, stable coins can continue to serve the crypto market. On the other hand, Governments will increase their fiscal revenue.
So my opinion is same to you, governments will not destroy stablecoins in the long term. I can't imagine what governments will make such a stupid decision?

Yep, its a win-win outcome and not hurting everyone except to the people who try to avoid tax.
Also, if government can make a good technology to provide stable coins as payment processor on the country ofc it could make better to the economy.

Expecto

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In my opinion, governments can see stablecoins as a threat to their digital currency which they will develop in the future. Because they will have really big similarities. So they can think like stablecoins can damage their currency.

S3300

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Why worry when we have decentralized stable coins as well? If government is going to trample on stable coins it will only going to be the likes of USDT and USDC but DAI, remember why no one can fuck Bitcoin? This is where decentralized projects have the upper hand

kizlod

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I'd say no. They should accept and support it to stay in step with progress. It should be good both for them and for us.

BOAEDAN

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I think stable coins may not be destroyed by the government in the future because stable coins are very useful for price manipulation so I think stable coins like USDT will remain in use in the future and will not be destroyed.

laohe628

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Quote from: hari9981 on May 28, 2021, 06:16:18 PM

I dont get it the reason why governments do that thing, isnt stable coins help government to move the macro economy on the good way?
I predict they wont destroy it, they will rules it and make some tax from it, its sound more rational for me.

I think collecting taxes is win-win outcome, on the one hand, stable coins can continue to serve the crypto market. On the other hand, Governments will increase their fiscal revenue.
So my opinion is same to you, governments will not destroy stablecoins in the long term. I can't imagine what governments will make such a stupid decision?

Ekyfitri

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in fact, it is not necessary. the most important thing I think is the processing of stable assets in the crypto market with an effort to increase the adoption of transactions in their country's fiat currency with crypto on exchanges that are legal in that country.
The government has only highlighted the negative impact of stable crypto assets which might make it weak for the country's fiat currency. they don't think about how to increase the value of their fiat currency for adoption in the crypto market.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: hari9981 on May 28, 2021, 06:16:18 PM

I dont get it the reason why governments do that thing, isnt stable coins help government to move the macro economy on the good way?
I predict they wont destroy it, they will rules it and make some tax from it, its sound more rational for me.

They are doing that already. No democratic government wants to ban everything. They are possible sources to get paid from and that is taxation. So even someone here might be thinking like a radicalist, the people who run the government are thinking way better things.

Quote from: ?? on ??

I think that stablecoins like USDT seem to be very difficult to destroy and of course it seems impossible for the government to do that, so I think the stable coin will still be circulating and its free circulation can be used to manipulate the price of bitcoin and make the price go up or down.

Truly, you cannot destroy a currency as long as people use it and like I have said in this thread previously, only a radical government would do such a thing. Regulation is what they can and probably will do - which is a good thing. We need to keep a stop on the money laundering and that would improve the public picture of crypto a lot. That can improve the global acceptance and price in general in future.

In that sense governments would not need to create their own coins but only regulate the ones already here.

Koutami

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Quote from: ?? on ??

I think that stablecoins like USDT seem to be very difficult to destroy and of course it seems impossible for the government to do that, so I think the stable coin will still be circulating and its free circulation can be used to manipulate the price of bitcoin and make the price go up or down.

Its possible if there's crime related on the USDT (kinda Money laundery), its like LibertyReserve who got destroyed by US Governments before.

cabron

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Quote from: ?? on ??

I think that stablecoins like USDT seem to be very difficult to destroy and of course it seems impossible for the government to do that, so I think the stable coin will still be circulating and its free circulation can be used to manipulate the price of bitcoin and make the price go up or down.

There had been issues with it before but they are fixing it. Although it may not really erase the fact that there had been issues like the accounting of its real reserve which there has to be real USD accounting but there were articles circulating about it that they have settled.

Stablecoin I think will still not be destroyed. Paypal rumor was that they are about to release Paypalcoin which is basically just like a stablecoin.

ILuckyGuyI

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Maybe they would like to do such thing after they launch their own digital currencies. Because then, they will most probably see these stable coins as a threat to their digital currency. But I still don't think it would be a logical action.

hari9981

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I dont get it the reason why governments do that thing, isnt stable coins help government to move the macro economy on the good way?
I predict they wont destroy it, they will rules it and make some tax from it, its sound more rational for me.

Dread Pirate Roberts

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Stable coin help easier crypto market trader and user to manage money they money and calculation flow as long they keep stable and not change. or maybe they will adding minimum requirement for developer who will running stable coin and put them on exchange such backup money , liquidity . so stable coin only exist for developer and company who meet the requirement.

Abiky

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Quote from: TastyChillySauce00 on May 15, 2021, 12:26:14 AM

Stablecoin could potentially become a threat for government's CBDC and there's some countries out there which has rather controlling government and that kind of countries have the potential of banning stablecoins simply because they can.
But, I doubt any country gonna ban stablecoin in the long run, after all these stablecoin legally established and there's private company behind it who gets taxed by the government each year off their profit.
Maybe if government want to escalate into banning all crypto except the government's then it could happen.

Good point. Governments are already taxing private companies issuing stablecoins, so banning them now would not be a wise idea. We might live in world where both CBDCs and stablecoins co-exist, similar to what's happening with traditional Fiat and crypto right now. It's important to remember that stablecoins were only created as a tool for day traders and investors alike. They enable the "best of both worlds" by combining the stability of Fiat and the security/reliability of crypto. Governments will have nothing to lose since most stablecoins are backed by real Fiat reserves. The more people invest into stablecoins, the stronger Fiat (USD) will become. With or without stablecoins, crypto/Blockchain tech will be here to stay thanks to its decentralized and censorship-resistant design. Just my thoughts Grin

firmino10

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Don't get it wrong, stable coins are not threats to the financial system (they are digital fiat currency), so the government are not really worried about it. The main threat to the government is bitcoin and other cryptocurrencies, because they have not control over it.

raji1995naya

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I don't believe this is possible for all stablecoins. Since they violated the rules, governments could outlaw the use of such stablecoins. Governments now have a variety of monitoring tools and do not need to prohibit stablecoins. I'm sure they'd block other coins if they were serious about introducing their own crypto coin. They clearly want the coins to be used, but the only way to do this is to prohibit anyone from using them. Stablecoins that are not issued by the government, regardless of whether they are protected by fiat, will be rejected. Any of this is quickly accomplished by them.

TastyChillySauce00

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Quote from: tanjiran on May 06, 2021, 06:28:34 PM

the question is, why should the government destroy the stable coin?

if the government wants it then the government only needs to make a ban regarding the use of cryptocurrency in its country, that's over. without needing to destroy anything, it doesn't seem classy anyways. The decentralized network is seen as a threat because the government cannot fully control and supervise, while for those who aspire to freedom, decentralization is a solution.

Stablecoin could potentially become a threat for government's CBDC and there's some countries out there which has rather controlling government and that kind of countries have the potential of banning stablecoins simply because they can.
But, I doubt any country gonna ban stablecoin in the long run, after all these stablecoin legally established and there's private company behind it who gets taxed by the government each year off their profit.
Maybe if government want to escalate into banning all crypto except the government's then it could happen.

BayAngelo

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We will welcome the combine service of both Fiat and stablecoin. the world population is increasing in an alarming rate and i don't think fiat currency been controlled by the government will serve the purpose. crypto is needed. we need to find a possible to combine both currency together to serve a single purpose. a means of payment for services been rended.

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