Will governments destroy stablecoins in the long term?

[Kitaiev]

I don't think this can happen with all stablecoins. Governments may ban the use of certain stablecoin because they broke the rules. At the moment governments have many control instruments and do not need to ban stablecoins.

[sapnu]

I don't think this can happen with all stablecoins. Governments may ban the use of certain stablecoin because they broke the rules. At the moment governments have many control instruments and do not need to ban stablecoins.

In each country, the government has all the capability to destroy a certain altcoin. No matter how successful or well-known that stablecoin is, as long as they plan or they intend to destroy, it will be destroyed. There are still exceptions actually, like bitcoin and other successful coins in the market. Even if the government would do something to destroy the reputation of those, there will still be a lot of users who would keep on using it in the dark. The government might seem to go against cryptocurrencies but the actual thing is that they are secretly taking advantage of cryptos domination and will surely make the most in the future.

[accounting 181293]

if they were serious about launching their own crypto coin, I'm sure they would ban other coins. they definitely want the coins to be used, so the best way is to ban others. stablecoins that are not made by the government will have no place, no matter if they are backed by fiat. they easily do all of that.

[john1010]

As far as I know AMerica is the only nation that are critical to cryptos, look at what happen to Ripple, the hearing/trial is still on going and also there are some coins/tokens are now on the hot seat, US is one of the threat in cryptocurrency, because they want to control the crypto economy and they want decentralize platform to look and impose AMLAC to every US and non US citizen who are holding bags of cryptos.

[cyriljundos]

I think it is hard to destroy the stable coins like top 5 in coinmarketcap, they build strong foundation alredy in crypto world and its very hard for it to lower the price. We know that digital currencies like alternative coins is future of world and more stable prices and stable in trading

[Becky666]

  Basically fiats can't destroy fiats as the government itself won't care about them becasue they can be easily be regulated for the benefit of the government. The government in some years to come will gather these stable-coins for their benefit, so, the fear of the government destroy these stable-coins will not even exist. The decentralized stable-coins should be those that government might fight but still yet might not see the light of the day as these decentralized stable-coins can't be trace.

[imstillthebest]

no they wont destroy it because stable coins and fiats are close to each other .
 stable coins are the digital version of fiat but we have a small number of stable coins today and governments that dont have thier own stable coins can create one with its own stable value not 1 usd  .
if there is a threat to fiat that are cryptocurrencies says the government not me because this was been debated before by governments on why they impose a ban in cryptos .

[Ekyfitri]

I think it is hard to destroy the stable coins like top 5 in coinmarketcap, they build strong foundation alredy in crypto world and its very hard for it to lower the price. We know that digital currencies like alternative coins is future of world and more stable prices and stable in trading

stable crypto won't interfere with fiat money. there is no reason I think a government should do that.
Some exchanges that can make fiat withdrawals must also be integrated with the intended bank. there will be no stable crypto withdrawals to the bank. all must be converted first.

[BitcoinPanther]

There is always a possibility.  If the government think that stablecoins are fraudulent and that is is used to launder money then there is a huge chance the the government will se it as a problem and will file a criminal case against it and/or order for the ban of the stablecoins in their country.

[Golftech]

There is always a possibility.  If the government think that stablecoins are fraudulent and that is is used to launder money then there is a huge chance the the government will se it as a problem and will file a criminal case against it and/or order for the ban of the stablecoins in their country.

That's facts which mostly considered as government till today still seeing that side of crypto industry, if they see

that stable coin which is the version / representative of fiat inside this market are being use as a channel for transacting

illegal activities, the chance that they'll chase this coin to the point that they'll abolish or destroy it's existence from their

jurisdiction.

[Coyster]

if they were serious about launching their own crypto coin, I'm sure they would ban other coins. they definitely want the coins to be used, so the best way is to ban others. stablecoins that are not made by the government will have no place, no matter if they are backed by fiat. they easily do all of that.

This is not true, CBDC's are going to be launched in most countries in the coming years, but they will be in operation with other coins, when talks of CBDC's "shed it's milk teeth'', people taught it'll be unable to function/coexist with other coins, but CBDC's are centralized, thus it's very much different from dex crypto, thus there'll be absolutely no problem using the both of them in the same area.

Having said that, the best way for a government to promote their own cbdc/stablecoin isn't to ban or destroy other coins, people have their preferences and choice, thus it's great to let people decide which coin they want to use and it's more ideal in a situation like this were the different coins somewhat perform different purposes.

[isaac_clarke22]

~

Whether it'd be decentralized cryptocoin or stable ones like you mentioned, government cannot truly destroy those.
The least they could do would be just to be ban it like every single existing exchange you know out there can be banned.
Sure ban it, but then people would proceed to private browsing.
So to answer your question, OP. No, it cannot be.

[uneng]

Once governments start launching their own coins we will know the answer for this question. So far I see no issues with stablecoins, if things continue this way stablecoins will coexist together with governments' digital currencies. My guess is that governments don't have enough power to forbid someone from using a stablecoin, the same way they have no power to forbid someone from using bitcoin or any other decentralized crypto currency. The point that may incentive people to use governments' coins instead of stablecoins is the safety people have when using the national currencies, guaranteed by the authorities. The same guarantee they assure when you invest with the national banks, for an example.

[RondoAnyar]

will not the government destroy the stable of coins, because the government has no right to it. and the government can't do that, so I think it's an impossible thing the government can do even with any technique.

[Yamifoud]

Well, Maybe...honestly, I'm not sure and I don't think it now. Of course, changes will come sooner but I wasn't thinking that the government will do this, I'm thinking about how the whales could change the market situation.
I was looking forward to seeing the government will support but this does not mean that we will abandon stablecoins for the reason that we are adopting the digital world. Because whether we like it or not, many people were still be using this one since the use of digital currency is just an option. And I'm sure that I'll still be using it.

[martina14]

At the present time now they cannot do that, and if ever they will destroy it, what is the valid reason anyway? Are you thinking stablecoins can replace by the digital currency? probably, this might be your thinking anyway, am I right? Though, the government has the power to do it but unfortunately, they will not do that for sure in the end.

[nightwishx]

They will make their own stablecoins, of course, which are easy to control and also have strict regulations. I'm not sure they will make any special rules regarding stablecoins at this point (in this case Tether). But as said, it will depend on the situation in the future, I'm sure there are still a lot of crypto statuses that have not been clearly regulated by any government.

[CryptopreneurBrainboss]

I don't think they'll do that. They have the power to even control those stable coin providers except the decentralized ones. They can still make use of them.
That's why I don't think that it's necessary for them to do it.

While that's true, I think the government would rather create theirs that endorse the already existing ones knowing fully well any positive decision made towards the cryptocurency industry is more like endorsing it generally. The government are scared of how far the industry has grown even with all their efforts to discredit it with all sort of fud.

The fiat system would be very difficult for the government to let go. With manual printing, they can print as many currency they need without anyone questing that decision as they're all into the game and it's hidden to some extend form the general public but if that system was to be digitalized or brought into the blockchain technology, it'll mean they'll have to account for whatever decision they take as their tricks would no longer be hidden.

You can see with tether, each time new coins are minted, the general public are aware, don't think the government would want to put themselves in that shoe.

[Altcoinsintel]

When governments discuss stable coins, Tether is not even mentioned. This gives you a clue about USDT and how much this token is given any serious attention.
Instead USDC seems to be gaining in favor or regulators. Anyway, I am not going to use any centralized stablecoin like those, and I am not supporting them. It would be better to hold any cryptocurrency instead of stable coins.

[grabpopcorn536]

The United States accepts cryptocurrencies and crypto companies. It is these companies that pay taxes and obey the laws related to cryptocurrencies. Stablecoins do not affect the economy much as they represent dollars or assets collateralized in banks. Stablecoins are in control.
If banks try to destroy stablecoins by banning firms, more decentralized stablecoins are created instead.
Read the following article to understand more about decentralized stablecoins.
https://hackernoon.com/a-comprehensive-guide-to-decentralized-stablecoins-22f66553c807