ECB President: There is clearly a demand out there that we have to respond to

[hugeblack]

Watch it ----> https://youtu.be/chHnk6lSc5A

In a new interview with the new European Central Bank President Christine Lagarde publicly speaking about the demand for stablecoins.

My personal conviction is that given the developments we are seeing, not so much in the bitcoin segment, but in the stablecoins projects … we had better be ahead of the curve if that happens. Because there is clearly a demand out there that we have to respond to.

While answering a reporter's question, Mrs. Lagarde says the European Central Bank "only knows" one currency that is currently stable.
As for her talk about bitcoin, she said: Bitcoin is not necessary to ask for permission.
What do you think of these words? Especially with what is happening in amending the regulatory laws of German banks.

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[figmentofmyass]

Watch it ----> https://youtu.be/chHnk6lSc5A

In a new interview with the new European Central Bank President Christine Lagarde publicly speaking about the demand for stablecoins.

My personal conviction is that given the developments we are seeing, not so much in the bitcoin segment, but in the stablecoins projects … we had better be ahead of the curve if that happens. Because there is clearly a demand out there that we have to respond to.

While answering a reporter's question, Mrs. Lagarde says the European Central Bank "only knows" one currency that is currently stable.
As for her talk about bitcoin, she said: Bitcoin is not necessary to ask for permission.
What do you think of these words?

facebook saw the writing on the wall, that stablecoins have great untapped value for cross-border remittance. they did their research; the demand for libra is there. the explosion in tether usage in hong kong, mainland china, and russia ties into this too.

it seems like this stablecoin demand is forcing the ECB to discuss a "digital euro" system. this could (as lagarde points out) reduce consumer costs, "cut out the middleman", achieve financial inclusivity at low cost, and so on. this would in turn allow a digital euro to compete with private stablecoins in the remittance market---and eventually in all markets, because stablecoins might become common as mediums of exchange.

i wonder how the retail banks feel about all this. they are the middlemen being cut out in this scenario.

[NeuroticFish]

Christine Lagarde publicly speaking about the demand for stablecoins.

Yeah, just a small step in the direction ECB or a similar entity will make its own stablecoin. Because there's demand, because they cannot let FB profit from this demand, because banks "have to" remain put in their position: handle people's money, whether people like that or not.

[ecnalubma]

Bitcoin is not necessary to ask for permission.

Yes, because it is not created for certain government and it is not governed by anyone. Bitcoin should take all the credits without it no Blockchain, no Altcoin, no Shitcoins and Stablecoins. I think the government should ease their pressure about for it is the roots of this current innovation.

[blckhawk]

I'm not sure if it would make any impact on the market. She clearly stated that there has been settled a clear line of separation between what they're talking (although she seems to not understand that Bitcoin is singular, and not be used as collective term for cryptocurrencies), and that the ECB focuses on R&D in digital currency sector, not in cryptocurrencies. They would find out whether such need for digital payment exists.

[joinfree]

I think what she clearly means is that bitcoin as an anonymous and decentralized currency will still be used even if the government bans it. I mean how would you detect that someone in a particular country is using bitcoin or not, however this does not mean that she is in support of bitcoin. I guess she wants to remain neutral in the talks about adoption of bitcoin.

[hatshepsut93]

i wonder how the retail banks feel about all this. they are the middlemen being cut out in this scenario.

Are they though? I think it's more of Visa/Mastercard being cut out rather than banks, banks can easily integrate with stablecoins and act as custodians and provide the same options for loans and deposits as they do with fiat. And people who want to use stablecoins aren't known for deeply caring about privacy or control over their money, so I totally can see them using stablecoins with banks.

[clickerz]

Christine Lagarde publicly speaking about the demand for stablecoins.

Yeah, just a small step in the direction ECB or a similar entity will make its own stablecoin. Because there's demand, because they cannot let FB profit from this demand, because banks "have to" remain put in their position: handle people's money, whether people like that or not.

Whether they (banks) like it or not, cryptocurrency is continuously supported by the masses. Its growth and adoption is growing day by day, and since now ECB finds it has a clear demand its right time for them to act also by seizing an opportunity. Cryptocurrency growth is unstoppable though quite slow but growing.

[avatar_kiyoshi]

I'm not sure if it would make any impact on the market. She clearly stated that there has been settled a clear line of separation between what they're talking (although she seems to not understand that Bitcoin is singular, and not be used as collective term for cryptocurrencies), and that the ECB focuses on R&D in digital currency sector, not in cryptocurrencies. They would find out whether such need for digital payment exists.

It will bring a market sentiment to choose stablecoin (which is centralized). Actually if the ECB's call to use stablecoin that the basic system is from cryptocurrency will attract many people to enter the world of cryptocurrency. There will be a clear legality about cryptocurrency and people will choose the best coin.

[figmentofmyass]

i wonder how the retail banks feel about all this. they are the middlemen being cut out in this scenario.

Are they though? I think it's more of Visa/Mastercard being cut out rather than banks, banks can easily integrate with stablecoins and act as custodians and provide the same options for loans and deposits as they do with fiat.

the issue isn't savings and loans. it's remittance:

stablecoins are increasingly being used for cross-border remittance and avoidance of capital controls:

“Tether has truly good liquidity in China,” a Chinese investor speaking on the condition of anonymity told CoinDesk. “One of the primary use-cases is a fiat on- and off-ramp for crypto trading. I did also see some people using tether for legit business use-cases like cross-border trading.”

On the other hand, two different Asian OTC traders, who requested anonymity to protect their businesses, told CoinDesk a significant portion of their traction comes from Chinese clients using USDT to move assets beyond their homeland’s strict capital controls.

“This has always been a significant part of OTC flows in crypto,” one Hong Kong-based trader said. For example, his desk conducted $45 million worth of trades on Aug. 6, with UDST representing more than half the volume.

using stablecoins to transfer funds across borders means there is no need for bank wires or third party remittance services. it cuts banks out of the process entirely. cash and blockchains; no banks.

in the future, if this stablecoin liquidity continues to grow and grow, they could also experience adoption as a medium of exchange because of their wide acceptance, rather than just a remittance vehicle.

that makes stablecoins doubly a threat for retail banks. visa and mastercard are not the only ones profiting from debit/credit card transactions. every time a consumer swipes their visa card, their bank is charging interchange fees to the merchant. this is extremely lucrative for banks.

[exstasie]

My personal conviction is that given the developments we are seeing, not so much in the bitcoin segment, but in the stablecoins projects … we had better be ahead of the curve if that happens. Because there is clearly a demand out there that we have to respond to.

While answering a reporter's question, Mrs. Lagarde says the European Central Bank "only knows" one currency that is currently stable.
As for her talk about bitcoin, she said: Bitcoin is not necessary to ask for permission.
What do you think of these words? Especially with what is happening in amending the regulatory laws of German banks.

They don't sound too concerned about Bitcoin. Their data probably confirms the theory that Bitcoin and similar crypto assets are being treated primarily as speculative investments, not stores of value.

All the stuff we're seeing surrounding Libra, Tether, China's proposed digital currency, this talk of a digital euro......it's all related. There is burgeoning demand for instant, stable peer-to-peer payments. Regulators won't be able to hide from it forever. Lagarde sounds like she's acknowledging that.

[Getmon]

While answering a reporter's question, Mrs. Lagarde says the European Central Bank "only knows" one currency that is currently stable.
As for her talk about bitcoin, she said: Bitcoin is not necessary to ask for permission.
What do you think of these words? Especially with what is happening in amending the regulatory laws of German banks.

Lagarde has been consistent in her pronouncements in favor of cryptocurrency. She does not hype it but she really knows that crypto is the future of transparent and reasonable money. She does not promote it either. Her statements are treading on encouragement to try to get to know the technology more and explore its potentials.

That answer is indeed curious but I think it simply means Bitcoin is already allowed although not in explicit law. It has been used and there is no argument to it being the preference of many people. It could also mean that Bitcoin is not something that is under anybody's control and so whether it will be allowed legally or not, it will continue to be in use. 

[davinchi]

They know there is a demand for it but when will they react to it is the real question. Stablecoins are not something I favor that much because I do not trust the companies behind it, there is one backed by circle company, there is a famous tether one, there is binance one, there is gemini one, there is even talks of a facebook one.

None of these gives me that trust a nation could give, if USA government one day came out and said they are doing a USDG which is usd government backed or whatever they name it I would totally use it, think about it you have a stablecoin fully backed by a whole nation, they could do billions upon billions of it and not have to deal with any problems. It would be even a nice way to raise money for them as well so there is incentives for them to do it too.

[alyssa85]

it seems like this stablecoin demand is forcing the ECB to discuss a "digital euro" system. this could (as lagarde points out) reduce consumer costs, "cut out the middleman", achieve financial inclusivity at low cost, and so on. this would in turn allow a digital euro to compete with private stablecoins in the remittance market---and eventually in all markets, because stablecoins might become common as mediums of exchange.

i wonder how the retail banks feel about all this. they are the middlemen being cut out in this scenario.

Retail banks in the eurozone are already being hurt by the ECB's negative interest rate policy. If they can't make money from fees, they go bust.

Lagarde would do better in restoring interest rates back to positive than in tinkering with stablecoins.

[Ucy]

Watch it ----> https://youtu.be/chHnk6lSc5A

In a new interview with the new European Central Bank President Christine Lagarde publicly speaking about the demand for stablecoins.

My personal conviction is that given the developments we are seeing, not so much in the bitcoin segment, but in the stablecoins projects … we had better be ahead of the curve if that happens. Because there is clearly a demand out there that we have to respond to.

While answering a reporter's question, Mrs. Lagarde says the European Central Bank "only knows" one currency that is currently stable.
As for her talk about bitcoin, she said: Bitcoin is not necessary to ask for permission.
What do you think of these words? Especially with what is happening in amending the regulatory laws of German banks.

I guess she is considering the possibility of ECB creating its own stablecoin in response to facebook coin or something.
I read through the article and found this most interesting:

Bank of England Governor Mark Carney has suggested that a global central bank digital currency might replace the dollar as the international reserve currency one day.

[buwaytress]

Been a while since we've seen Ms Lagarde speak up, but she's clearly pro technology, anti assets that we don't understand yet. Bitcoin is getting there, but it will be a while before it's truly understood (and in the eyes of regulators, truly proven). I mean you need only see the questions posed by journalists and economists to Bitcoin experts (Antonopoulos being really one of the few) to see that they really still don't get it yet. As long as they're not convinced Bitcoin can't be manipulated, they won't get it. And on the other hand, there are those will be truly anti Bitcoin if they finally understand how uncontrollable it is and how they're being threatened by it.

The response to demand may yet change.

[exstasie]

Retail banks in the eurozone are already being hurt by the ECB's negative interest rate policy. If they can't make money from fees, they go bust.

Lagarde would do better in restoring interest rates back to positive than in tinkering with stablecoins.

They are between a rock and a hard place. Stablecoins are threatening to steal euro liquidity in the coming years. Meanwhile, they can barely sustain economic growth as it is.

These really are unprecedented times, which is why I think people are too quick to dismiss the S-curve adoption prospects of Bitcoin. Everyone seems to think it's limited to slow logarithmic growth, setting their sights on $50K or $100K for BTC when it could be headed for the millions.

[audaciousbeing]

This is a further testament to my conviction that with the continued demand for digital coins, government would find away to ensure that the make one available. The point is they know that when a generation is going in a direction, it becomes too difficult to stop so the best way for them to win is to create an alternative for them which they can control. While this in the long run would be a blow mostly to decentralised coin because it would continue to weaken the strength of these coins as we have more stable coins backed by the Treasury of each country and supported as such.

[Lucius]

As long as they're not convinced Bitcoin can't be manipulated, they won't get it. And on the other hand, there are those will be truly anti Bitcoin if they finally understand how uncontrollable it is and how they're being threatened by it.

Is it even possible to eliminate the possibility of manipulation without decentralization? By that, I mean, above all, price manipulation, which is impossible to control because it is a free market. I just don't see how Bitcoin would fit into the European or any other monetary system, because in that case, the control of the money would be in the hands of ordinary people.

That is why so much talk about the possibilities of creating stablecoins, it is something that is completely centralized and controlled by the authorities. The best chance for Bitcoin is to be declared legal tender on the whole territory of the EU, as is the case in Germany.

[abhiseshakana]

Watch it ----> https://youtu.be/chHnk6lSc5A

In a new interview with the new European Central Bank President Christine Lagarde publicly speaking about the demand for stablecoins.

My personal conviction is that given the developments we are seeing, not so much in the bitcoin segment, but in the stablecoins projects … we had better be ahead of the curve if that happens. Because there is clearly a demand out there that we have to respond to.

While answering a reporter's question, Mrs. Lagarde says the European Central Bank "only knows" one currency that is currently stable.
As for her talk about bitcoin, she said: Bitcoin is not necessary to ask for permission.
What do you think of these words? Especially with what is happening in amending the regulatory laws of German banks.

Technological developments present opportunities as well as challenges for the world economy, including the EU community. Therefore, the development of this technology must also be faced with readiness and preparation. Technology has radically changed human life. The digital economy has opened up new opportunities in the field of trade, as well as bridging the interests of producers, consumers, and markets without being limited by space and time. For this reason, an integrated policy is needed so that the development of the digital economy can be a stimulus for European economic growth.

Christine Lagarde fully understands that as a leader she must bring technology to the ECB so that the ECB continues to exist. Along with the 4.0 industrial revolution that spawned new entrepreneurs in the financial sector, Christine Lagarde understood that banking must be more efficient, fast, transparent, and customer-centric. "The boundary between competition and collaboration will be different from before, which we often hear today with the term co-opetition,"

Lagarde has just served as president of the ECB and in accordance with his commitment that will maintain the confidence of European citizens towards the euro which is considered a real symbol of European integration. In addition, Christine captured the momentum after the finance ministers of the European Union countries refused Libra's presence until a special formulation was needed to deal with challenges and risks that arose in the future, for example, for consumer protection, privacy, taxation, cybersecurity, and operational security, money laundering, funding terrorism, market integrity, governance, and legal certainty.

Stable coins are an answer to the demands of technological development and also as a tool to minimize potential risks in the future.