Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: Proton on July 08, 2021, 10:51:40 AM
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The deputy governor of the central Bank of China stated that Bitcoin and stablecoins have become speculative tools with potential risks that threaten financial security and social stability, also become payment tools for money laundering and illegal economic activities.
He emphasized stablecoins, saying that especially the global "stable coins", may bring risks and challenges to the international monetary system, payment and settlement system, etc. We feel about this problem Worried, so we took some measures.
https://www.cnbc.com/2021/07/08/chinas-central-bank-is-quite-worried-about-some-digital-currencies.html
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Tether (USDT) is the most widely used stablecoin, with a market cap of over $62 billion, according to data from Nomics. While Tether claims that each USDT token is backed 1:1 by U.S. dollar cash reserves, its claims have been called into question by critics.
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Tether (USDT) is the most widely used stablecoin, with a market cap of over $62 billion, according to data from Nomics. While Tether claims that each USDT token is backed 1:1 by U.S. dollar cash reserves, its claims have been called into question by critics.
This is true, but not only should it worry users. I am paying more and more attention to reports of attempts by various governments to take control of stable coins, even more than any other cryptocurrency.
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The deputy governor of the central Bank of China stated that Bitcoin and stablecoins have become speculative tools with potential risks that threaten financial security and social stability, also become payment tools for money laundering and illegal economic activities.
He emphasized stablecoins, saying that especially the global "stable coins", may bring risks and challenges to the international monetary system, payment and settlement system, etc. We feel about this problem Worried, so we took some measures.
It seems that after Bitcoin, the Chinese government has now taken up stablecoins. Apparently, these statements and the subsequent possible restrictive and even prohibitive measures are being carried out in order to remove all possible competitors for the successful circulation of the digitized yuan, which should soon be officially introduced into circulation. Previously, other stablecoins did not interfere with the Chinese government, and now, as they prepare to launch their stablecoin, they suddenly become a threat to their financial stability. Apparently, the Chinese authorities should again expect negative information regarding the circulation of stablecoins in this country.
I draw the attention of the author of the topic that on this forum it is customary to leave a link to the information used for a more extensive acquaintance with this topic.
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The deputy governor of the central Bank of China stated that Bitcoin and stablecoins have become speculative tools with potential risks that threaten financial security and social stability, also become payment tools for money laundering and illegal economic activities.
He emphasized stablecoins, saying that especially the global "stable coins", may bring risks and challenges to the international monetary system, payment and settlement system, etc. We feel about this problem Worried, so we took some measures.
It seems that after Bitcoin, the Chinese government has now taken up stablecoins. Apparently, these statements and the subsequent possible restrictive and even prohibitive measures are being carried out in order to remove all possible competitors for the successful circulation of the digitized yuan, which should soon be officially introduced into circulation. Previously, other stablecoins did not interfere with the Chinese government, and now, as they prepare to launch their stablecoin, they suddenly become a threat to their financial stability. Apparently, the Chinese authorities should again expect negative information regarding the circulation of stablecoins in this country.
I draw the attention of the author of the topic that on this forum it is customary to leave a link to the information used for a more extensive acquaintance with this topic.
I completely agree with you. Thanks for the advice. Added a link to the news.
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Well, the circulation of stable coins of commercial structures in the future will be necessarily regulated by states and there is even no doubt about it. This has already been stated in the European Union. The sluggishness of states in this matter is most likely due to the novelty of such financial assets and governments first prefer to study and observe the impact of these stablecoins on the global financial system. With the introduction of state central bank stablecoins, commercial stablecoins will become unnecessary competitors to state stablecoins and will therefore become more regulated. The Chinese government is preparing to officially launch its digitized yuan, so it is understandable that they are "suddenly concerned" about the presence of other stablecoin competitors from commercial entities.
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I don't understand what is happening in China because stable coins in cryptocurrency are also banned even though these stable coins are coins whose rate value is the same as the real FIAT value in the real world.
Maybe this is just FUD to lower the price of Bitcoin because the price of Bitcoin is currently very high and continues to rise, if we consider further that China also has a stable Yuan Digital adn it's available in Alibaba marketplace.
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Chinan always gives strange surprises, whether this is good news or bad news because China is always creating something that makes all cryptocurrency traders upset.
I also believe that China is very imaginative about what has happened so far in the cryptocurrency market because China has always dominated what is called News and FUD.
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I don't understand what is happening in China because stable coins in cryptocurrency are also banned even though these stable coins are coins whose rate value is the same as the real FIAT value in the real world.
Maybe this is just FUD to lower the price of Bitcoin because the price of Bitcoin is currently very high and continues to rise, if we consider further that China also has a stable Yuan Digital adn it's available in Alibaba marketplace.
Private and other commercial stablecoins can create significant hardship for governments if they collapse through fraud or simply organizational error. After all, they are backed by fiat, and this will affect the financial stability of those states, whose currency they are backed by. Therefore, states cannot risk so much, letting this part of the financial market go to chance.
Following China, Japan, as well as other states, is going to tighten the regulation of such stablecoins. This is simply inevitable.
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We see that the Chinese government went much further than the above statement and declared all transactions in cryptocurrency illegal. This was to be expected, since the Chinese government has initiated tough measures against cryptocurrency 14 times since 2017, and this information has each time had a negative attitude to prices in the cryptocurrency market. It seems that after a general ban on cryptocurrencies, this government will finally have no opportunity to negatively influence cryptocurrency.
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Indeed, I have been holding some of my investments in USDT TRC-20 already long time, and in general, when I withdraw my investments from cryptocurrency exchanges, I always withdraw my investments in USDT TRC-20, since the commission for withdrawing USDT TRC-20 is only 1$, and if you will withdraw through USDT ERC-20, then the commission is usually about 20$-30$, and in general, since the gas price on the Etherum blockchain has been very high already 2-3 years, then of course it is understandable why many people in the cryptocurrency field chose the Tron blockchain and not the Ethereum blockchain and this also applies to USDT.