The Doom of the Stablecoin Industry?

[disconnectme]

I think this article is just a click bait, it makes no sense at all what was describe in it makes no sense. How can government sensor stable coin like DAI for example, it is peg to Eth  price or other cryptos, exchange can decided not to trade them agree but country can not do anything about them. If it is a fiat backed stable coin like USDT and USDC then  they can

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[FanEagle]

Normally, when we are talking about banks cooperating with governments to ban some crypto, I would 100% be behind crypto, I mean we are all here because we like crypto and how could we say we want governments to ban bitcoin for example, we wouldn't be able to do that and I personally would never want something like that and would be very much against it.

However in this precise scenario maybe the banks and the governments are right? Think about it, these people are creating fake digital currencies and they tell you that it worths 1 dollars each and you believe them, sometimes you can actually withdraw the money for it as well so it looks legit but how about we all try to sell our usdt all together at the same time and see how they bankrupt in a minute, they won't be able to pay them all because they do not have as much dollars to pay you as much as the tether they sold you. Which is why heavy regulations should definitely happen.

[acdc]

Not only central banks but also governments do not like stabecoin, the reason is simple because they can not completely manage them.
Perhaps in the future governments will put in place many rules to restrict the development of stabecoin but it is very unlikely that they will completely ban it.

[ScamViruS]

Stablecoin is important for crypto. If you cannot convert your currency to usd then how will the market operate? That's why stablecoin is needed. But ordinary traders have no knowledge of the stablecoin they currently have. Which of these stablecoin prints they wish, which is really a concern. They have no real usd reserve they only print fake supplies. Because there is no audit. So banning those who are involved with such activity will not be bad.

[Youghoor]

Well, i have always had this idea in mind that if cryptocurrencies are ever going to be used for payments stable coins are likely going to be used. i believe this is the reason why the Central Banks want strict laws be made against its issuance because I don't think any trader would want to be caught in the volatile swings of other major cryptocurrencies in this industry.

[Bonwin]

Those enacting this rule, are they actually in charge of the entire world economy because I am surprised that their rule will now make Stablecoins become so useless. Never, it is not going to happen. Well, that might work in their own jurisdictions and to maybe the exchanges that they have control over. As far as the crypto space is concerned, we are operating a decentralized system, although, most exchanges are centralized, I do not think they will be subject to their dictatorship.
I believe that these people are trying every means possible to be in control, most especially over everything.

[gundala]

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What are your thoughts?

For conventional financial systems, this is like a threat indeed. Moreover, stable coins offer the stability that is similar to fiat or the price that is the benchmark, with a combination of transparency, privacy, low cost, fast processing, which is in cryptocurrency. So that people who are afraid of cryptocurrency volatility can still enjoy crypto with very little volatility using stable coins. That is why stable coins are very effective as an alternative payment.

[EbriDan]

Too many stablecoins now, spreading out liquidity in a bad way

[Abiky]

This is pretty funny. Half a year ago, these same people spoke about the possibility of full approval of stable coins, and now they complain about their insecurity for banks.
I do not think that they will be able to ban stable assets, it will be ridiculous.
In addition, this can only be done within the framework of certain jurisdictions, although even in this case it is not clear to me how they are going to track the user's trading on the exchange, or they will simply close them.

The final decision lies on the governments themselves. I believe that they'll have success taking down centralized stablecoins. But they'll have a hard time trying to do the same with decentralized stablecoins like DAI and bitUSD. Central banks have seen crypto more as a threat lately because they prove to be an "exit route" for the currently deteriorating economy. They want to stay in control of people's money no matter what. An alternative payment system which is outside of the scope of a central authority, goes against what banks have established in the first place. Eventually, centralized stablecoins will have to comply with heavy-handed regulations or be left out of the game. There's no reason to worry about a stablecoin ban harming the entire crypto space, since it was designed to be completely independent from the world's monetary system.

Long before stablecoins even existed, Bitcoin and other cryptocurrencies performed well within the mainstream world. I know that volatility reduces one's spending power in terms of Fiat, but that's not an issue when using crypto directly for daily payments. Stablecoins are helpful when you want the convenience of Fiat with the power of Blockchain technology. If they'd cease to exist, then you'd just cash out your crypto to real Fiat at any time. I believe that central banks are just giving these suggestions to governments worldwide to spread FUD within the crypto/Blockchain space. No matter what their efforts may be, they'll never be able to take down the industry in its entirety because of its decentralized and censorship-resistant nature. Just my thoughts

[Cryptrx]

Stable coins are also digital coins and I don't see them being banned if the rest of crypto won't be banned. Only thing is that strict regulations may be imposed on them.

[imoet]

According to Crypto Briefing, central banks have suggested governments worldwide to ban stablecoins from existence (or at least, impose heavy-handed regulation). It seems that they see stablecoins as a threat to the existing monetary system. Central banks have recommended to prohibit the use and issuance of decentralized stablecoins (like DAI and bitUSD) within the mainstream world. If governments follow their recommendations, does this mean that the stablecoin industry is doomed?

I wasn't surprised about the news, since central banks and governments have long dominated the world's economy. While crypto is still decentralized, the market is largely dependent on Fiat as we speak. A ban on stablecoins might be harmful for the price (and possibly mainstream adoption) of crypto. Blockchain tech will still be alive and running, no matter what governments' actions will be. But mainstream people will look elsewhere due to decaying prices across the market.

For those unaware, here's the link to the article by Crypto Briefing: https://cryptobriefing.com/central-banks-recommended-ban-stablecoins/

What are your thoughts?

It looks like that crypto become a thread nowadays.  Because it help people's economy in easy way.  It already happen that stablecoins influence people' life easily and they accept it without worry.  Maybe people get bore with the bank central's system.  It depends on the government.  They can not prohibit digital coin and stable coin because they become people need.

[H1N1]

I wonder why they wants to prohibit stable crypto coins. Stable coins are good, there is no manipulation price, it is stable.
Then i guess they don't want peoples adopting cryptocurrency and no longer using real money on banks anymore.
Crypto community must keep decentralized to support crypto adoption, so we can independently using crypto coins without any centralized party prohibit the community.

[Abiky]

Stable coins are also digital coins and I don't see them being banned if the rest of crypto won't be banned. Only thing is that strict regulations may be imposed on them.

It's possible to ban centralized stablecoins by penalizing the issuer. But it's not feasible to do so on decentralized stablecoins like DAI or bitUSD, because they're not issued by a single entity. The best thing governments can do is impose heavy-handed regulation on centralized stablecoins if they allow it to be used by people in the mainstream world. This would be much of a concern to the stablecoin issuer, than the end user. I think that with greater regulations on the stablecoin industry, the lesser scams or fraud will exist in the crypto space. It'll be disastrous for the crypto market if stablecoins cease to exist as most cryptocurrencies depend on them for liquidity. Some say that Tether (USDT) largely contributed towards Bitcoin's astronomical rise in price back in 2017. If it ends being "banned" by governments worldwide, the entire crypto market will experience a massive downfall in price like never before.

Nonetheless, it's not surprising to see central banks suggesting governments worldwide to act against stablecoins since they see crypto as a threat to the existent monetary system. These entities don't want people to use an alternative payment system that's outside of their scope. They'd want something that can be easily controlled and manipulated at will. Which is why, they'll do anything to try to stop the crypto revolution. Their efforts will be in vain, thanks to the decentralized and open source nature of the Blockchain space. Just my thoughts

[bttmember]

It is yet to be seen, do remember btc and other cryptocurrencies were banned in a lot of countries a couple years ago but they were still traded as normal, most of the countries now have developed pro crypto rules and i think stablecoins will also stay it is just a matter of time when governments will understand them.

[danggoron]

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What are your thoughts?

The normal response of a conventional system is almost equal to that of a stable coin. Previously many people were worried about using cryptocurrency because of its high volatility, but with the presence of stable coin it can be overcome so that cryptocurrency can be an effective payment alternative.
The adoption of cryptocurrency is increasingly widespread and this cannot be stopped just like that. Although there are many pros and cons, cryptocurrency is a very good development to overcome various problems.

[Baofeng]

I have a similar thread here: FSB on Global Stable Coins (GSC).

[Lizzylove1]

Stable coins can not outrightly be ban from the market, they just might comply with the complain and worries. Each country will just have to come up with their laws as regards these stable coin usage. How do you think this will be out-rightly ban from the market?

[Abiky]

It is yet to be seen, do remember btc and other cryptocurrencies were banned in a lot of countries a couple years ago but they were still traded as normal, most of the countries now have developed pro crypto rules and i think stablecoins will also stay it is just a matter of time when governments will understand them.

I hope so. Because if governments ban stablecoins in its entirety, the whole crypto market will be negatively affected. After all, stablecoins are the ones who "pump" the liquidity of the crypto market. What governments can do is regulate centralized stablecoins more thoroughly in order to bring legitimacy to the space. People will surely use centralized stablecoins in the mainstream world, if governments help to reduce the number of scams or fraud in the industry. As far as decentralized stablecoins go, it'll be nearly impossible to enforce regulations on them. Stablecoins like DAI and bitUSD have a higher chance of survival than those that are centralized (Tether, and Binance USD) because of the lack of a middleman/central operator. In case governments "hit the kill switch", decentralized stablecoins will remain alive and actively traded across the Blockchain.

Ban or no ban, crypto will be here to stay for a very long time. "Bankers" have been pushing governments against crypto, because they're quickly losing ground in the world's economy. They don't want an alternative financial system bringing back people power over their own money. Something that cannot be controlled by central banks and governments worldwide, could see constant opposition from these entities over time. Thanks to the decentralized and open source nature of the whole crypto/Blockchain industry, it'll be impossible to enforce a ban at will. Just my thoughts

[Crypto_lion]

Central banks and government thrive in the control they have on citizens through financial systems so it's not really ba surprise m but I hope that government's become progressive and allow decentralized financial systems.

[Abiky]

Central banks and government thrive in the control they have on citizens through financial systems so it's not really ba surprise m but I hope that government's become progressive and allow decentralized financial systems.

It has always been like that since paper money came into existence a long time ago. An alternative form of money which is outside the control of third-parties, removes governments' ability to enforce control over their citizens. I'm still confident that truly sovereign money like Bitcoin and Ethereum will survive in the long run. But centralized stablecoins could see their doom in the future, if governments ban them in their entirety. Only the stablecoin issuer will be affected, but the average person will still be able to use decentralized stablecoins like DAI or bitUSD. It's expected to see negative reactions from central banks against stablecoins, since these digital assets greatly resemble traditional Fiat money. The decision of allowing the use and issuance of centralized stablecoins will ultimately lie in the governments themselves.

Nonetheless, the stablecoin industry could flourish in the long run if governments take no action against it. My hope is that startups and companies issuing centralized stablecoins could work together with the government in order to make the crypto world a better place. But if that doesn't happen, crypto's prices could become even lower in the long run as centralized stablecoins provide the most liquidity to the market. Regardless of a stablecoin ban in the mainstream world, crypto will still be useful as an alternative to Fiat thanks to its decentralized and censorship-resistant design. Just my opinion