Topic: Will governments destroy stablecoins in the long term? (Read 800 times)

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.

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.

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.

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.

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

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.

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.

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?

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.

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.

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.

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

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.

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.

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.

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.

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

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.

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.

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.

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.

Yes, the government will be able to do all the centralized work as it wants these criteria are not considered when investing. Investors see the risk of changing governments and policies the government will suffer more if the process does not affect investment and growth for stability the economic growth of any country slows down capital market indicators and economic growth are interrelated the capital market does not like any kind of uncertainty. The capital market is not stable until it is clear what will happen when something good or bad happens for sure the capital market accepts it.

Governments can destroy stablecoins because they're centralized. But governments CANNOT destroy cryptocurrencies like Bitcoin or Ethereum because they're decentralized and censorship-resistant. The more crypto's level of mainstream adoption grows, the harder it'll be for governments to do anything against it. I believe that once CBDCs become a reality, centralized stablecoins will cease to exist. Only decentralized stablecoins like DAI and USDJ will be able to stand the test of time. Remember, stablecoins were only created as a tool for traders to gain the benefits of Fiat without having to cash out crypto directly to a bank account. It's like a "temporary bridge" between the world of crypto and Fiat, before CBDCs take the world by storm. A government-backed digital currency would make stablecoins completely unnecessary. I wouldn't worry about this since decentralized cryptocurrencies are all you need to achieve true financial sovereignty.

Nonetheless, no one knows what governments will do with stablecoins in the long term. Depending on how people use stablecoins, governments could either devise new regulations that will amplify or dampen their growth over time. If they go all the way down the drain, people will still have the option to sell decentralized cryptocurrencies for cash (Fiat). With or without stablecoins, crypto will be here to stay. Just my opinion

You are right the government cannot control stable coins or just any coin actually. I think even if the government launches their own stable coin, people are not going to use it because it would be tracked, traced and taxes will be imposed which ultimately sounds like making transactions from your bank account.

The reason stable coins like USDT are so popular is because they give you a solid way to store the value of your coins while also not asking for any KYC or giving your details to the government. The governments need to understand that freedom and privacy is the only and most important reason why cryptocurrencies are taking over, be it a stable coin or utility coin or just any crypto in general.

Having USDT in wallet feels like no risk of market movement while having complete privacy, which I am sure no government launched stable coins can achieve or even aim to achieve.

If it was as simple as that then they could have done so already, besides they do not really have a lot of justification to ban all cryptocurrencies on their country, and people living in relatively free countries are going to wonder why governments are doing this with a technology that does not harm anyone.

But the case of stable coins is different, stable coins are performing the same function of fiat and they are even using fiat to back their coins, the governments may argue those coins are too similar to their own and since those coins are centralized they could easily destroy those coins and force people to use their new digital currencies.

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.

The possibility is without a doubt there, governments on the past have destroyed several attempts by people to create a centralized alternative currency that runs parallel to the fiat system we have in place and all of those systems failed because governments could just confiscate a few banks accounts and arrest a few people and claim those coins were too similar to their own and kill it that way.

This is why bitcoin is decentralized and it seems to me that sooner or later the governments are going to come for them as there is no way they are going to allow this once they develop and release their own digital currencies.

Yes mate you are right because governments have no power of destroy any cryptocurrencies but government can control their banking system al last.

Currently, decentralized stablecoins make up a very small percentage of the total number of stablecoins on the market. And I don't understand why traders prefer to use centralized stable coins, because the benefits of decentralization are obvious to everyone. Or maybe not everyone understands it after all?

That is the true answer. I do believe that the biggest stablecoin will be a decentralized one, after that CBDC will come and they will make a big noise when they first start but slowly and gradually will go down, and then the stablecoins we have right now. USDT acts as if there is tens of billions of dollars worth of interest towards it, but the reality is that every single day bitcoin rises people are moving away from it and moving towards others, which is why I think it is quite obvious we are not going to see those at the top anymore.

I know DAI is new and not a big deal just yet, but things like that will become the real stablecoin in the future, it may not be DAI, it could be something in the future that is similar to that but does marketing a lot better or people will use it a lot more, but it will be something similar to that to reach high levels.

If by stablecoins you mean coins that are not too volatile, then I strongly doubt they could do that to all stablecoins. The centralized ones could be destroyed, but the decentralized ones would be hard to stop.
Besides, a stablecoin does not have to be backed by fiat to be a stablecoin. You could easily turn a very volatile crypto into "stablecoin" by moderating its volatility (without compromising on the deflationary feature)

In regards to the bolded, decentralization definitely doesn't make cryptocurrency unstable. You could keep lots of the extremely volatile decentralized crypto fairly stable by regulating their supply in relation to demand.

it can very well happen, because in my opinion the government loses a lot if the circulation of money continues and increases in the crypto market, the losses experienced by the government are in terms of taxes, because as we know that crypto transactions do not yet have taxes

When the governments of different countries introduce a national digital currency, then in my opinion centralized stablecoins will give way to CBDC. But by that time, the crypto community will understand that a real stable coin can only be decentralized, and in this case, states will not be able to compete with it.

They do not even need a reason,,, when have they ever needed a reason other than to remind the people that they rule that they are the ones in power?

Once governments control coins and learn how to use the technology for their own games, then they will allow it like China has allowed and developed their own China coin.

Then why it is called as stable coin if it can be destroyed by someone or some group of people? That coin should have also stable defense system mechanism to protect its own environment.

But what we should know is that USDT is a global business. And it benefits the government if they work well together, not by destroying what is already there. USDT or as stable as coins that already exist today are not only in America but also on various exchanges in various countries. This means that they get support from other countries. If the government issues other stable coins, of course they will also have to get support from various other countries to be recognized as official coins, equivalent to real money. Although crypto is easily circulated, the government has the power to blacklist every coin if they consider the coin to be unofficial.

The subject of the lawsuit in the ripple case was that the SEC believed that two executives at Ripple Labs had abused the coin. There were no claims from the SEC to the circulation of the XRP coin itself, and therefore nothing threatened it from the very beginning.
The situation with stablecoins is completely different. A significant part of them are backed by the currency of states, and these states can claim that their currency is their property and prohibit anyone from using it as collateral for the circulation of other stablecoins. Since the existing stablecoins are direct competitors of the CBDC states that will appear soon, then such a move by the states would be quite logical. The Chinese government already attributes this in its regulations, which will ensure the circulation of the Chinese digitalized yuan.

Yes, there are a lot of chances for governments to prohibit stablecoins for any reason. If anything like that happens then we cannot expect those reputed exchanges will keep listing stablecoins as they need to comply with government rules, they will simply delist stablecoins.

I'm not expecting people will go for P2P way of trading for centralized things. Because, if governments prohibit stablecoins then its value may not remain stable which means there will be no more point of trading them even in P2P manner. I am also in favor of decentralized stabelcoins. Hopefully we will get something like that in coming years.

Prohibitions will not work on decentralized currencies like Bitcoin of course since they are always easily found and available on p2p networks and not just on centralized exchanges.

But stablecoins are by nature centralized. If they are banned, no regular exchanges will want them and very few p2p people do Tether swaps,,, much less other stablecoins!

Whether stable or utility coin, there is none any government can quash. The current suit between the US SEC and the Ripple (XRP) as an organisation is a proof. The case proves that the individuals that adopts a cryptocurrency are the major determinant of what it becomes. You can also see what has become of the Shit coins lately.

I think stable coins are here to stay, nothing would happen to it. The sheer will of the entire crypto community is enough to make them immune from government meddling

for what ? i don't see stablecoins is a threat for them/governments , the real threat is a bitcoin, eth , and many many , and now , they even have no idea how to stop it , instead of destroying it, they even just adopt it.

If there are parties who want to corner the stable coin at this point, it is very ridiculous because nowadays almost all use stable coins at different needs and on average they use it when trading, and another one to take over all the market is such a huge job that only some of the groups will not be able to do it.

They definitely gonna destroy them if they sees the stablecoin owned by private company could conflict with their interest, imagine what action a government would take to  get back all the market shares for it once they figure out that their CBDC most likely not gonna be as popular as the already established stablecoins.


Definitely taxes at every corner so they can make profit off it the same amount generated from their own version of stablecoin this so called CBDC. but I'm pretty sure most of them gonna oppose the idea of private company trying to compete with them, after all most of government likes to monopoly things.
Just wait until all these CBDC released to public it's gonna shake the whole crypto market not because its usability but because the fuss about regulation around it.

The probitions will never work and did you see so many prohibitions on bitcoin in the past? that proves if that will be useless. The government has no choice other than adopt crypto.
So many banks and big companies have been starting to adopt crypto. The government will never able to ban crypto or stable coin.
This digital currency will always exist in the future. They can only give taxation.

I am not sure that any government will use any stablecoins as a model for their digital currencies, because there are different principles of functioning and the only common thing can be the use of blockchain as the main technology and nothing more. Even more so, I am not sure that governments will use stablecoins in their activities at all. However, this does not negate the fact that stablecoins and digital currencies can completely coexist and there will not necessarily be bans in this area. Here everything is strictly individual in each state and is directly dependent on the attitude to cryptocurrencies in general.

I think it can't be done, because they can't do it even if they use the news to corner the stable coin but it will be hard to stop and it will not be stopped.
the only way is to make their own currency and starting from scratch will probably take some time to join but taking over the whole market is very unlikely.

Most governments might be already monitoring the progress of stablecoins but I'm not sure they will consider stable coins as the testing ground for their CBDC because stable coins are limited to crypto space but CBDCs are not having any such limit.

There are a lot of possibilities for governments to collect taxes from stablecoin holders as most currently available stablecoins are corporate based hence any kind of regulation will be possible for government against stablecoins.

Yeah, I am also looking for a truly decentralized stablecoins but I'm not seeing anything like that to be launched in any near future.

I agree with what others said here that if they wanted to destroy stable coins they would have acted already. On the other hand they may be aware that there can also be decentralized solutions, possibly anonymous solutions. If you were a government, what would you prefer? A centralized stable coin that you can scrutinize whenever you want or drive innovation towards decentralized anonymous stable coins that you neither can stop nor scrutinize?

Either governments use stablecoins for their own benefit or destroy them altogether. If governments are able to collect taxes from stablecoins, I don't see why they'd want to get rid of them in the first place. Stablecoins could benefit traditional Fiat currencies, as governments use them as "experimental grounds" for their own CBDCs. Some people believe that governments will use pre-existing stablecoins (instead of creating their own digital currencies from scratch) as the new standard of money in the future. Whenever that will become a reality or not, it's yet to be determined. If stablecoins were to live alongside CBDCs, they're going to have to "play by the rules". Otherwise, they'll fade into oblivion leaving people only with decentralized cryptocurrencies and traditional Fiat (via CBDCs).

Nonetheless, we cannot tell with certainty what will happen in the future. Regulations will play a huge role in determining stablecoins' prominence in the mainstream world. As long as stablecoin issuers comply with regulations, there should be nothing to worry about. With or without stablecoins, crypto/Blockchain tech will be here to stay for a very long time. Just my opinion

They were trying to create a law suite against USDT but they could not take any action. They tried to create a case where USDT is not fully backed by dollar but failed to proof.
As always, the government will try to destroy not only stable coins but also the overall crypto but they can't succeed.

Why would the government allow these stable coins to coexist should be the question when they do not offer anything to the government and they will not wish to see a stable currency shining above their fiat counterpart. We will only have a clarity when the regulations are set in place and how each government will deal with these things and how they view stable currency and privacy based currency and i expect every government will have a different view point.

Of course, I doubt about destroying stablecoins, but they will take measures for sure. They will impose taxes, introduce some prohibitions. Some countries may ban the whole thing in principle

- The government is looking for an opportunity in crypto but if they try to ditch the stablecoins in order to establish a new network of them, that doesn't seem to be the exact plan, even many investors will be averse to them when almost many people always exchange their bitcoin for stablecoins to keep value. Seriously, the destruction will not be reasonable, want to participate in here as a stablecoin, the government needs to create a friendly relationship and an easy environment, when they reach the attention of people, they will become owners of the stablecoin industry and other stablecoins will decrease in value.

On what kind of rules, you are referring to? Because this is not kind of exchange or casino where people register and maintain an account and may get clear themselves for all KYC procedures so that government will have positive stand against them. It is kind of open world, devs cannot be responsible for users behavior on committing any crime like money laundering or supporting terrorism/drugs. So, there is no rules are binding here for those stablecoin corporations secured.

It means in near future anything may happen. So, it is highly dangerous to make use of those centralized stablecoins. I read on this forum about decentralized stablecoin but not sure about its progress as of now.

The United States accepts cryptocurrencies and crypto companies. It is these companies that pay taxes and obey the laws related to cryptocurrencies. Stablecoins do not affect the economy much as they represent dollars or assets collateralized in banks. Stablecoins are in control.
If banks try to destroy stablecoins by banning firms, more decentralized stablecoins are created instead.
Read the following article to understand more about decentralized stablecoins.
https://hackernoon.com/a-comprehensive-guide-to-decentralized-stablecoins-22f66553c807

When governments discuss stable coins, Tether is not even mentioned. This gives you a clue about USDT and how much this token is given any serious attention.
Instead USDC seems to be gaining in favor or regulators. Anyway, I am not going to use any centralized stablecoin like those, and I am not supporting them. It would be better to hold any cryptocurrency instead of stable coins.

While that's true, I think the government would rather create theirs that endorse the already existing ones knowing fully well any positive decision made towards the cryptocurency industry is more like endorsing it generally. The government are scared of how far the industry has grown even with all their efforts to discredit it with all sort of fud.

The fiat system would be very difficult for the government to let go. With manual printing, they can print as many currency they need without anyone questing that decision as they're all into the game and it's hidden to some extend form the general public but if that system was to be digitalized or brought into the blockchain technology, it'll mean they'll have to account for whatever decision they take as their tricks would no longer be hidden.

You can see with tether, each time new coins are minted, the general public are aware, don't think the government would want to put themselves in that shoe.

They will make their own stablecoins, of course, which are easy to control and also have strict regulations. I'm not sure they will make any special rules regarding stablecoins at this point (in this case Tether). But as said, it will depend on the situation in the future, I'm sure there are still a lot of crypto statuses that have not been clearly regulated by any government.

At the present time now they cannot do that, and if ever they will destroy it, what is the valid reason anyway? Are you thinking stablecoins can replace by the digital currency? probably, this might be your thinking anyway, am I right? Though, the government has the power to do it but unfortunately, they will not do that for sure in the end.

Well, Maybe...honestly, I'm not sure and I don't think it now. Of course, changes will come sooner but I wasn't thinking that the government will do this, I'm thinking about how the whales could change the market situation.
I was looking forward to seeing the government will support but this does not mean that we will abandon stablecoins for the reason that we are adopting the digital world. Because whether we like it or not, many people were still be using this one since the use of digital currency is just an option. And I'm sure that I'll still be using it.

will not the government destroy the stable of coins, because the government has no right to it. and the government can't do that, so I think it's an impossible thing the government can do even with any technique.

Once governments start launching their own coins we will know the answer for this question. So far I see no issues with stablecoins, if things continue this way stablecoins will coexist together with governments' digital currencies. My guess is that governments don't have enough power to forbid someone from using a stablecoin, the same way they have no power to forbid someone from using bitcoin or any other decentralized crypto currency. The point that may incentive people to use governments' coins instead of stablecoins is the safety people have when using the national currencies, guaranteed by the authorities. The same guarantee they assure when you invest with the national banks, for an example.

Whether it'd be decentralized cryptocoin or stable ones like you mentioned, government cannot truly destroy those.
The least they could do would be just to be ban it like every single existing exchange you know out there can be banned.
Sure ban it, but then people would proceed to private browsing.
So to answer your question, OP. No, it cannot be.

This is not true, CBDC's are going to be launched in most countries in the coming years, but they will be in operation with other coins, when talks of CBDC's "shed it's milk teeth'', people taught it'll be unable to function/coexist with other coins, but CBDC's are centralized, thus it's very much different from dex crypto, thus there'll be absolutely no problem using the both of them in the same area.

Having said that, the best way for a government to promote their own cbdc/stablecoin isn't to ban or destroy other coins, people have their preferences and choice, thus it's great to let people decide which coin they want to use and it's more ideal in a situation like this were the different coins somewhat perform different purposes.

That's facts which mostly considered as government till today still seeing that side of crypto industry, if they see

that stable coin which is the version / representative of fiat inside this market are being use as a channel for transacting

illegal activities, the chance that they'll chase this coin to the point that they'll abolish or destroy it's existence from their

jurisdiction.

There is always a possibility.  If the government think that stablecoins are fraudulent and that is is used to launder money then there is a huge chance the the government will se it as a problem and will file a criminal case against it and/or order for the ban of the stablecoins in their country.

stable crypto won't interfere with fiat money. there is no reason I think a government should do that.
Some exchanges that can make fiat withdrawals must also be integrated with the intended bank. there will be no stable crypto withdrawals to the bank. all must be converted first.

no they wont destroy it because stable coins and fiats are close to each other .
 stable coins are the digital version of fiat but we have a small number of stable coins today and governments that dont have thier own stable coins can create one with its own stable value not 1 usd  .
if there is a threat to fiat that are cryptocurrencies says the government not me because this was been debated before by governments on why they impose a ban in cryptos .

  Basically fiats can't destroy fiats as the government itself won't care about them becasue they can be easily be regulated for the benefit of the government. The government in some years to come will gather these stable-coins for their benefit, so, the fear of the government destroy these stable-coins will not even exist. The decentralized stable-coins should be those that government might fight but still yet might not see the light of the day as these decentralized stable-coins can't be trace.

I think it is hard to destroy the stable coins like top 5 in coinmarketcap, they build strong foundation alredy in crypto world and its very hard for it to lower the price. We know that digital currencies like alternative coins is future of world and more stable prices and stable in trading

As far as I know AMerica is the only nation that are critical to cryptos, look at what happen to Ripple, the hearing/trial is still on going and also there are some coins/tokens are now on the hot seat, US is one of the threat in cryptocurrency, because they want to control the crypto economy and they want decentralize platform to look and impose AMLAC to every US and non US citizen who are holding bags of cryptos.

if they were serious about launching their own crypto coin, I'm sure they would ban other coins. they definitely want the coins to be used, so the best way is to ban others. stablecoins that are not made by the government will have no place, no matter if they are backed by fiat. they easily do all of that.

In each country, the government has all the capability to destroy a certain altcoin. No matter how successful or well-known that stablecoin is, as long as they plan or they intend to destroy, it will be destroyed. There are still exceptions actually, like bitcoin and other successful coins in the market. Even if the government would do something to destroy the reputation of those, there will still be a lot of users who would keep on using it in the dark. The government might seem to go against cryptocurrencies but the actual thing is that they are secretly taking advantage of cryptos domination and will surely make the most in the future.

I don't think this can happen with all stablecoins. Governments may ban the use of certain stablecoin because they broke the rules. At the moment governments have many control instruments and do not need to ban stablecoins.

This problem may indeed arise in the near future. On the one hand, existing private and other commercial stablecoins use the currencies of various countries to back their stablecoins. On the other hand, stablecoins of the central banks of states should soon appear in large quantities.
I have already read that when preparing a package of laws that will ensure the circulation of the Chinese digitalized yuan, there will be rules that recognize this currency as the property of the state and prohibit its use by others as ensuring the functioning of other stablecoins.
Since the current stablecoins will effectively compete with the stablecoins of the central banks of states, states may well prohibit anyone from using their currency, or even their stablecoin, to enable private and other commercial stablecoins to function.

A real competitor for existing stablecoins is not yet available on the market, but it will definitely be the digital USD, work on which has already begun. And this digital dollar will automatically gain the trust that the traditional dollar has. Of course, the digital dollar will not be the only one, other governments are also working on creating a CBDC, but the digital dollar will definitely be one of the leaders.

I really don't think governments want to destroy the stable coins. On the contrary, they plan to launch their own currencies in the form of a stable coin.

On the other hand, they will certainly want to modify the legislation concerning them! (for example in my country, trading to stable coins is not taxable at the moment).

They will think twice before doing that. It could be possible that they themselves are trying to find out the ways to optimise and use the stablecoins in the long term so that they can help digitalise the nation, public sectors and also decrease the burden on the current fiat system. Well, this is all my imagination but what I read in the different bills from different countries that, they are willing to adopt the crypto currencies or identify the best possible scenario where government is using the blockchain technology for developing their own currencies. If they want to make such currency then it would be most probably the stabelcoin to keep their economic cycle stable. So yeah, on the higher note, they won't be banning them real soon or may be never.

I don't think this is ever gonna happen, we tend to credit so much power to the government as if they are God, remember that the people, I mean the citizens are the ones who make up the government, the government so to say have no power without the people, so whatever the people decides will always stand above that which those in government offices decides, cus the people are the ones who put them there.
The government have no power to destroy crypto currency stable coins except the people allow them to, one thing we should always have at the back of our minds is that they can never arrest everybody, if we all come together and say this is what we want, they will have no choice but to fall along, crypto currencies in general is here to stay, no government can destroy any part of it, be it a stable coin or coins with high instability.

Governments will come up with their own e-currency.
Once this happens, I question wether all other stable coins will survive.
So the easiest way to destroy current USDT-alike stable coins, is to provide a product which can compete.

that's time consuming and probably not the most efficient method. i do agree that they'll control it instead, force the companies to follow some rules, such as send them details on who request new issuance etc. it would be beneficial for them, no time wasted, and they can easily kill two birds with one stone.

otherwise the coins they release will not be popular. they would first prohibit its circulation in the market by intervening in centralized exchanges for delisting. after that maybe they will make regulations that put illegal stablecoins. at the end only government-released stablecoins were on the market.

At this time this is only a "thought", not yet a reality. So firstly a government can develop a stablecoin backed by their country's fiat currency and all users to use that. But only a radical country would limit users to that specific currency and stop usage of others. A democratic country would allow usage of both but keep some perks to make sure their users use their country developed stablecoin more than others.

A government cannot "destroy" a stablecoin. It can stop its use, though even I am not that knowledgeable as to how that is possible by any process other than stopping electricity supply or Internet stop.

Mostly what governments are concerned with is the money laundering that can happen with cryptocurrencies. If they find a possible solution to that then such regulations will not apply. So for some who is not performing any criminal activity, they dont need to worry about any upcoming regulations.

That possibility is unlikely to happen. They cant destroy it but regulations can be made to force traders, investors and owners to pay tax. Stablecoins have made enormous impacts on the crypto world (especially USDT) and it would be a nightmare if one day USDT disappear 

Actually, even the US government will not shut down stablecoin

the US government will favour the use of stablecoin because it will still put USD as the reserve currency despite the crashing economy.
It's yet not clear how they could take advantage of the market but if one day the government-backed stablecoin will be one of the stablecoins used in crypto, it's going to be clear that they like it being part of the crypto ecosystem. the government can easily get tax from it.

How can stablecoins threaten fiat if they are fiat? And they aren't even decentralized, they can easily be fully regulated, because they all have some company that holds the fiat that backs the coins. It's not yet clear which kind of digital fiat will be more popular - privately managed stablecoins or government's stablecoins. A lot of people would trust government more than some company that can pull an exit scam or otherwise fail.

It will not happen for sure otherwise so many countries are very interesting to issue their own CBDC. The stable coin could be regulated by the government but i don't think you can destroy this. So many times the governments were trying to destroy bitcoin but they are slowly starting to accept the fact if technology can't be destroyed.
It looks like the stable coin will try to create a big domination in the digital currency for sure.

The crypto space has grown so much and therefore I don't think the government will make any move to ban stablecoin, however they can only make moves to launch their own; in this space and current market value, banning will hardly work the only thing that will work is healthy competition, that is, give users or people a reason why they should use government digital currencies other than Tether and others. Also, to back this up, one of the reasons why Tether keeps leading among other stablecoins is because they have succeeded in making it easier and possible to leverage different blockchain networks to carry out transactions thus removing any limitations caused by high fees, that is to say, people want easy payment methods, easy ways to keep their funds without bothering about the government and so forth.
To cut the story short, crypto has come to stay and the government knows that, in fact they know that the world is an innovative place and thus innovations like cryptocurrencies can only keep getting better, so instead of banning or agitating why stablecoins are challenging their central banks, they will come up with their own digital currencies.

Nah, I don't think that government will go after stable coins, if there is a coin that they should go after, it should be bitcoin and the rest of privacy coins as well. There will be no benefits for them to chase after a coin that is pegged on USD. Stable coins are too centralized as well, so doesn't make sense for them and what is the need to destroy them in the first place? There is no threat whatsoever, besides governments have their own crypto back up crypto called CBCD which is pegged to their local fiat.

I don't think they'll do that. They have the power to even control those stable coin providers except the decentralized ones. They can still make use of them.
That's why I don't think that it's necessary for them to do it.

Stablecoins would certainly be a subject for some legal discussions especially the creation of one. If an entity can use their existing assets as a proof of their wealth and use that valuation to create stablecoins with the same value, wouldn't that be just creating money out of thin air? Even if it's "backed" by the assets, it is still money out of air considering that there is a high chance that the assets held by that entity wouldn't simply go away all the while retaining control of the stablecoins

I don't think such legal discussions in the future re: stablecoins would invite any distaste from the government. If anything they might as well try to legalize it, or work on legal loopholes to retain it for the economy.

I dont see reason why. I see that central banks will compete with stale coins. But to destroy them I cant see it.  USA goverment will destroy value of all stable coins that are nominated in USD. That is what they will for sure do in next decades.

If goverments want to destroy Stable coin, they probably would destroy it now, why they let Tether printed so much USDT and then make it crash ? We never know who are the real man behind those stable coin. It could be goverments it self.

I think they already know that tether and other stable coin is existed.

As stablecoins become more popular in the mainstream world, many are starting to wonder whenever governments will allow the industry to flourish or destroy it altogether. We've seen how interested central banks and mainstream governments are in launching digital currencies of their own. Something like a stablecoin would prove to be a huge threat to the existence of Fiat. I wouldn't put decentralized cryptocurrencies on this, because they're largely unstable. Only stablecoins pegged to the USD like Tether or USD Coin could pose a real threat to the financial sovereignty of Fiat currencies like the traditional US Dollar. Either governments use pre-existing stablecoins as their own, or create new ones from scratch (most likely situation) effectively putting an end to stablecoins' preeminence in the mainstream world.

What are your thoughts?