Vena Review-The Rise of Stable Currency May Be the Catalyst for the Digitization

[Vena_Network]

At present, a large number of stable coins have appeared on the market, which have already attracted the attention of all countries. Yao Qian, director of the Digital Money Research Institute of the People's Bank of China, recently issued a document saying that the current virtual currency market is small and the application of stable tokens is still in its infancy.

Yao Qian explained four reasons in the article:

First, stable tokens are more likely to be associated with central banking such as payment and settlement, money market, and cross-border capital flows than other virtual currency products.
Second, stabilizing tokens can pose challenges to cross-border capital management frameworks.
Third, the stable tokens of government regulation are different from those of the non-governmental stable tokens.
Fourth, in the world of digital assets, the lack of digital legal currency is the root of the problem. The emergence of stable tokens is partly a manifestation of this crux.

The IMF's assessment express that the total market value of virtual currency is less than 3% of the G4 central bank's balance sheet this year, which is not enough to affect financial stability. However, it is worth noting that the total market value of stable token products is growing steadily, product types are increasing, product innovation is active, and circulation speed may increase rapidly. The gradual maturity and popularization of stable token products may have an impact on macro financial management and deserve the attention of monetary authorities and regulatory authorities.

Generally speaking, some countries with weaker financial systems and weaker economic development prefer digital currencies such as Bitcoin, which are expected to enter the new financial ecosystem through digital currencies. In dealing with this issue, the country that bears the brunt is Venezuela.

As time goes by, this contradiction will intensify and the growth of stable currency will become a catalyst for the digitization of legal currency. At the same time, in order to maintain financial order, governments will regulate the cryptocurrency market and promote the process of digitization of legal currency.

VENA Network is a digital asset financing agreement - now supports digital currency management, OTC over-the-counter trading and more. Vena Network plans to start ICO in mid-October and synchronize its online banking platform on the official website. At the same time, we plan to distribute Tokens in the incentive pool to long-term community supporters around the world, accounting for 10% of the total, and to extend the program throughout the community.

[Invest-or]

There are already more than enough of the so called stable coins. Most people in crypto want volatility and in any case the stable coins backing in dollars is more than dubious frankly.