Stablecoins will become the next CBDCs

[Hispo]

I pretty much agree with you. Governments from the United States and the European Union will take advantage of the already existing stablecoins for them to take over the control on blockchain transactions.
Most of centralized stablecoins already have desirable features for those governments anyways already, though, like the capacity to freeze funds and flag addresses, not even mention chain analysis tools which are used to connect several wallets to one single individual or several individuals working together to commit illicit acts through the use of stablecoins.

Still, there are characteristics of the Blockchain which are not so appealing to governments of those countries, like the fact anyone can check the history of the Blockchain easily on any explorer, in an ideal scenario, only authorized government officials would be able to do such thing.

Anyways, This one applies to western democracies, east autocracies are already in a rush to push their own CBDCs, as they are not as comfortable with blockchains as the USA and EU are.

[TastyChillySauce00]

I pretty much agree with you. Governments from the United States and the European Union will take advantage of the already existing stablecoins for them to take over the control on blockchain transactions.
Most of centralized stablecoins already have desirable features for those governments anyways already, though, like the capacity to freeze funds and flag addresses, not even mention chain analysis tools which are used to connect several wallets to one single individual or several individuals working together to commit illicit acts through the use of stablecoins.

Stablecoin of today is heavily regulated, I'm sure governments will have no problem using it.

I can see the pattern where more and more company starting to use stablecoin, maybe due to the fact that GENIUS act is here so they've got some regulatory framework to work with.
However I don't know if it's a good thing or a bad thing for crypto world, one thing for sure it will make the masses getting used to using crypto for remittance, etc.

[FinneysTrueVision]

On one hand many stablecoin proponents are saying that this will be positive for crypto, but once you look deeper into the GENIUS Act there are requirements that stablecoin issuers comply with AML laws and that they coordinate with the government in blocking transactions. This is taken from the Chainalysis website:

National security provisions
These provisions balance security measures with practical implementation requirements.

• Bank Secrecy Act compliance

     - Anti-money laundering (AML) and sanctions programs

     - Transaction monitoring and recordkeeping

     - Customer identification and enhanced due diligence

     - Suspicious activity reporting

• Technical enforcement capabilities

     - Issuers must demonstrate the ability to freeze or burn tokens

     - Non-compliant foreign issuers may be barred from U.S. markets

• Sanctions enforcement coordination

     - The Treasury Secretary must coordinate with issuers, where feasible, before blocking transactions involving foreign entities

I can imagine how thrilled Chainalaysis will be once this law gets passed because their business will be booming. A CBDC would have been controversial, so they are just doing it in a roundabout way, with the added benefit of huge corporate profits.

Coinbase has demonstrated that they are not trustworthy when it comes to handling customer data, yet this law will require users to give them a lot of personal information if they don’t want to have their USDC frozen based on frivolous suspicions.

[BitGoba]

All of these projects that issue so-called "stablecoins"  like Ethereum, Tron, Solana, etc.  are, in reality, highly centralized startups.
Each of them is controlled by a small group of insiders who make the key decisions and have disproportionate influence over the network.

Another important point: mainstream media has successfully pushed the false narrative that stablecoins are actually stable but they’re not.


They are pegged to fiat currencies, which themselves are inherently unstable and deliberately designed to lose value over time due to monetary inflation.
That inflation can, at any moment, spiral into something far more destructive  hyperinflation, where stablecoins can lose all their value overnight along with the fiat they’re backed by.

Bitcoin and gold are far more stable forms of money compared to fiat or stablecoins.

[nicolas222]

Stablecoins are interesting, a useful way to get out in profit at the end of trading, the only big flaw is that they can be blocked, frozen

[DeathAngel]

I agree that stablecoins will be the next big thing. The US & Bessent in particular are very bullish on them, he said that they strengthen the dominance of the dollar which is true because USDT & USDC are pegged to the US Dollar. I still think that the EU will try to bring out a CBDC though, they are so controlling, like communists.

[Firstfrost]

On the long run, my concern is would this be a better or worse than CBDCs because not everyone can understand how crypto/digital currency works and also even tho this might be a form of increasing adoption, it’s also kind of shady. The government would be in alliance with Circle/Tether, this would result in total control of decentralization in crypto. At the end of it all, government-approved KYC would be required, are you thinking what i’m thinking ?

[bullbandit9]

Stablecoins are interesting, a useful way to get out in profit at the end of trading, the only big flaw is that they can be blocked, frozen

Every single major token on altcoin networks can be blocked and frozen too. Instead of seeing this as a red flag for stablecoins, it should be seen as a red flag for these so called decentralized blockchains.

I agree that stablecoins will be the next big thing. The US & Bessent in particular are very bullish on them, he said that they strengthen the dominance of the dollar which is true because USDT & USDC are pegged to the US Dollar. I still think that the EU will try to bring out a CBDC though, they are so controlling, like communists.

Yes the EU is turning into a totalitarian commie shithole. Only leftist idiots that are afraid of reality are still dismissing it.

[Abiky]

All of these projects that issue so-called "stablecoins"  like Ethereum, Tron, Solana, etc.  are, in reality, highly centralized startups.
Each of them is controlled by a small group of insiders who make the key decisions and have disproportionate influence over the network.

Another important point: mainstream media has successfully pushed the false narrative that stablecoins are actually stable but they’re not.


They are pegged to fiat currencies, which themselves are inherently unstable and deliberately designed to lose value over time due to monetary inflation.
That inflation can, at any moment, spiral into something far more destructive  hyperinflation, where stablecoins can lose all their value overnight along with the fiat they’re backed by.

Bitcoin and gold are far more stable forms of money compared to fiat or stablecoins.

Yes. They're run like corporations. Among the Blockchains you've mentioned, Ethereum is the least centralized. But popular stablecoins are usually centralized, so the purpose of decentralization on the underlying blockchain network would be futile. It's all in the smart contract's code. Both USDT and USDC have blacklisting features. So it's easy enough to censor or freeze transactions at will. All made to satisfy the regulators.

One way or another, governments are already involved in digital payments. It makes sense to use existing solutions, rather than building one from scratch. Companies will work in tandem with the government for the issuance and distribution of stablecoins. No need for CBDCs ever. That's exactly Donald Trump's plan in the US. Don't say I didn't warn you. At least, we'll have Bitcoin to back us out. As long as freedom and privacy prevails, nothing else matters.

[TastyChillySauce00]

On the long run, my concern is would this be a better or worse than CBDCs because not everyone can understand how crypto/digital currency works and also even tho this might be a form of increasing adoption, it’s also kind of shady. The government would be in alliance with Circle/Tether, this would result in total control of decentralization in crypto. At the end of it all, government-approved KYC would be required, are you thinking what i’m thinking ?

Understanding how crypto works actually easy, you don't even need to understand how crypto works to start using stablecoin in the first place, it's literally the same mechanism as if you're using bank with multiple currencies.

As for whether it's gonna be worse than CBDC or not, let time answer it, hopefully the stablecoins in general stays the same, personally, I don't think current stablecoin will get its smart contract recreated to meet the requirements.