Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: mlawson71 on December 10, 2020, 05:32:32 PM
-
A new bill has been introduced to US Congress – a bill targeting stable coins like Facebook’s Diem (that used to be called Libra).
The bill is called Stablecoin Tethering and Bank Licensing Enforcement Act and is proposed by Rashida Taib (D, Michigan), together with Congressman Jesus García and Stephen Lynch. The purpose of the bill is to protect consumers from new threats related to the crypto market. The bill require entities offering stable coins to seek approval by the Federal Deposit Insurance Corporation (FDIC) and other relevant government agencies.
In other words, without such regulatory approval from relevant authorities, offering such financial instruments to the public will be illegal.
Source (https://www.forexbrokerz.com/news/us-to-introduce-license-regime-for-new-stable-coins)
This will likely make the industry safer, but will it also stiffle its development?
-
The government always protects its people, whether it's a visible crime or an invisible digital crime.
Perhaps the intent of the American government launching this is to secure all investors who enter the world of cryptocurrency.
With the law that covers the stable coins in America, "maybe" will definitely get a guarantee for everything that happens in the future.
-
The government always protects its people, whether it's a visible crime or an invisible digital crime.
Perhaps the intent of the American government launching this is to secure all investors who enter the world of cryptocurrency.
With the law that covers the stable coins in America, "maybe" will definitely get a guarantee for everything that happens in the future.
Right, every government thinks of its citizens from any unexpected issues. This stable coin act will be beneficial to the US citizens as well as others. Stable coins should have an act to follow otherwise any coin that claims as stable but they haven't follow certain criteria would be detrimental to the investors.
-
The government always protects its people, whether it's a visible crime or an invisible digital crime.
Perhaps the intent of the American government launching this is to secure all investors who enter the world of cryptocurrency.
With the law that covers the stable coins in America, "maybe" will definitely get a guarantee for everything that happens in the future.
Right, every government thinks of its citizens from any unexpected issues. This stable coin act will be beneficial to the US citizens as well as others. Stable coins should have an act to follow otherwise any coin that claims as stable but they haven't follow certain criteria would be detrimental to the investors.
I believe that the current situation will have a very positive effect even on tether, since a significant part of the stable USDT is backed by the dollar and various active ones. Based on this, the dollar will be very tightly pegged to the USDT and this is facilitated by the government.
-
If a private stablecoin or a stablecoin of other commercial entities is issued that is, for example, dollar-backed, then the US government has the right to enforce such conditions of circulation so as not to harm the image of the dollar. That is, if such a commercial entity misuses such a stablecoin or goes bankrupt, then in addition to harming investors in this stablecoin, it will damage the image of the dollar and the US government as its owner.
Therefore, in the future, similar rules of circulation of stablecoins will become the norm.
-
After the project was rejected many times Libra decided to make a stable coin but I also don't know what the project is like, because I'm not really interested at all
-
After the project was rejected many times Libra decided to make a stable coin but I also don't know what the project is like, because I'm not really interested at all
Still many users has interest on this project. It it finally comes to the market, it will be a big factor for cryptocurrency i think. First time, i had huge interest but now have less interest.
-
The issue of stablecoins should indeed be regulated and governments are even very late in doing so. After all, private digital coins circulate on their territory, which must be provided with the currency of these states, that is, any fraudulent actions with such stable coins can negatively affect the currency of such a state. Therefore, licensing the issue of stablecoins is very correct, as it will increase the level of confidence in them and the overall stability of the financial system.
-
It was all obvious. It was only a matter of time, sooner or later it would have happened, you yourself understand what colossal losses the state suffers without receiving taxes from the cryptocurrency.
-
I even wonder why the states have been inactive on this issue for so long. Private business uses the national currency of states for their enrichment, while states stood on the sidelines. It is not only that states are losing part of the profits they are entitled to, they are also risking their reputation in the event that the stablecoin, which uses the currency of this state as collateral, is misused. Stablecoins can also be used by fraudsters and in order for users of this market to be more secure, licensing of this type of activity is very necessary.
-
Creating a stable coin is not arbitrary because I believe that if a company creates a stable coin without any regulations from the authorities that regulate FIAT in the US, it will be very problematic in the cryptocurrency market.
We as a cryptocurrency #DevelopmentTeam must also comply with FIAT rules that have been circulating in the community because FIAT is controlled by financial institutions so that there is no inflation between Pump and Dump.
-
It could also be that this will make stable coins even more secure because the US state has tried to be the best in handling systems of stable coins but this observation could also boomerang on stable coins with various upcoming rules in the cryptocurrency space.
We can just take an example from a bank, if a stable coin has been regulated by a financial institution, the result will be like a bank that has various regulations so that it can stabilize prices or maybe it can also be a guarantor tool if there is a loss of a stable coin.
-
Over time, as states massively issue their digitized national central bank currencies, current private stablecoins will compete with government stablecoins, and then states may well be able to completely ban the circulation of private stablecoins. On the one hand, this will be quite logical, but on the other, there will be a lot of reasons for such a decision. Therefore, private stablecoins, at least a significant part of them, may soon cease to exist.
-
After the project was rejected many times Libra decided to make a stable coin but I also don't know what the project is like, because I'm not really interested at all
Libra was originally a project to create a stablecoin. Only Zuckerberg changed plans for the number and list of fiat currencies that would provide this stablecoin. This happened under constant tough pressure from the regulatory authorities. It is because of this that the stablecoin Libra, and later renamed Diem, has not yet appeared.
States are forced to regulate the emergence and circulation of private and various commercial stablecoins, as their abuse will affect the government currencies that will provide the stablecoin.