"If stablecoins were to become widespread, it could potentially lead to new risks regarding money laundering and terrorist financing. It is our job to ensure the new risks in connection with stablecoins will be adequately addressed."
Direct quote from Xiangmin Liu, president of the Financial Action Task Force (FATF), said that both the stablecoin and the companies that issue them would be subject to global standards on cryptocurrencies and traditional financial assets, Reuters reported.
Cryptos are indeed a risk if you look at it from a regulatory standpoint! Anything and everything that is not regulated or hard to regulated, is a risk according to the strictly centralized government system! Another matter of fact that, the FATF is currently being headed by China who are already infamous for their strict measures against cryptos! So what else can we expect?
They think that Stablecoin do a better job on the store of value and serving as a mean of payment.
However, they think that it should subject to regulation set out by government, which I think kind of defeat the original purpose of crypto...
Again the statement comes from the standpoint of current economic definition and regulatory perspective! Since stablecoin is backed (in most of the cases), it seems like a better store of value to the regulators! But if we see it from a crypto perspective, they are just a digital representation of fiat currencies to help people in trading or capital protection during bearing market. It's just a vehicle to bypass the risk for many of us!
