Hello Crypto Fam.
So, the FSB has released a recommendation on stablecoin regulation. They are doubting the notion that stablecoins are "stable," arguing that issuers lack the necessary tools to keep their stablecoin peg at all times, implying that no stablecoin currently meets their recommendations.
This is what they said about it:
“Most existing stablecoin issuers promise (implicitly or explicitly) to maintain a stable value, typically relative to a single fiat currency. However, many of these existing stablecoins are issued by unregistered and unlicensed entities and do not have credible mechanisms to support their promise of price stability.”
What do you guys think about this? Would you recommend the use of stablecoins or they just aren't worth the risk?
Original source of the story:
https://tokenist.com/fsb-says-no-stablecoin-currently-passes-its-recommendations/Stablecoins will be safer than other cryptocurrencies, but no cryptocurrency is truly safe, and neither is a stablecoin.
Long-term holding of stablecoins is risky. Investing in Bitcoin at low prices can diversify risks and be able to gain profits when prices rise to increase value.
