Stablecoin and digital economy

[Zigabel]

What effect can having a local stablecoin on the countries digital economy.

projects like this does have two sides at all times, just that the focus on the advantages can sometimes be more and keeping little to no attention to the disadvantages. anyways i will want to look into some possible advantages but pay little attention to the disadvantages, some other person could shed some light on that. There are some number of advantages we can see with this on the digital economy of any nation that gets to incorporate it to their digital economy, but they will have to make sure some monetary policies backs it up for it to thrive far well.

Most definitely it will be a very good way of attaining proper centralization of the digital economy for countries that are most concerned about it because when the stable coin becomes the center of exchange for the digital economy, then you can be sure that the they will have a good track record and control of the movement and exchanges around such on the digital space of such country. Obviously they will be making it a centralized coin, not one that will be decentralized like Bitcoin, so that they will be able to still get full control of the coin through out it's entirety, But this has got some inflationary risk, along side making the economy possibly prone to some levels of manipulations.

[Ashawowo(OS)]

So as a tool which support productivity, innovation and human happiness. Stable coin can not be categorized as asset that create weslth

Stable coins is only a transaction tool and not a wealth creation tool for countries with better performing currencies, but for countries which their currency is facing heavy inflation, opportunists can hold on to stable coins pegged to a more performing currency to make some quick money off it. I remember in my country, A dollar exchange rate was #460/$1 per dollar in the start of 2023 and now it's #1390/$1, so it is more than 3X profits for those who had their USDT stable coins from then in just 3 years.

[Fiatless]

Stable coins is only a transaction tool and not a wealth creation tool for countries with better performing currencies, but for countries which their currency is facing heavy inflation, opportunists can hold on to stable coins pegged to a more performing currency to make some quick money off it. I remember in my country, A dollar exchange rate was #460/$1 per dollar in the start of 2023 and now it's #1390/$1, so it is more than 3X profits for those who had their USDT stable coins from then in just 3 years.

The drop of the Naira caused economic havoc. It was a big example of how useless the fiat system could be. Those who held the US dollar shielded their money against inflation and also made a profit. Keeping money in Bitcoin is safer and more profitable. These stablecoins are centralized, so keeping large funds in Tether has high risk. What if they suffer hacks or sanctioned by the government?

[MainIbem]

If Elon Musk thinks money would be useless in future, he should lead by example and give all his money to charity or do give away on X, I dislike like when elites try to mislead the lower class whereas they're busy filling their purse and maintaining their wealth, why don't he give out all he has so I'll believe he's serious. Talking about stablecoins, does it offer inflation hedge, does it add value to my money overtime? If it doesn't do those then count me out, maybe CZ should convert his Bitcoin or BNB to stablecoins.

[Perfectbaby]

Elon musk is doing his business and doing his own marketing since he is also specializing in building robots that can help human life he is using that to make sure that he is being at the top to make people believe that he is right in what he is saying. Of course, AI can't entirely eliminates human task or takes over human jobs In reality, no matter what could be the cases we still need human in our life, such as people you can relates with and share real life experience and cases. Concerning about the digital currency, we know that many people loves using USDT that is basically being backups by USD, where it wouldn't be that able to decoupled.

[Ashawowo(OS)]

These stablecoins are centralized, so keeping large funds in Tether has high risk. What if they suffer hacks or sanctioned by the government?

This is true, the risks are undeniably present, I'll never recommend stable coins to someone as a long-term investment option, I was only pointing out possibilities to the person I quoted. Not only tether, even USDC, Ethereum and other centralized coins are no investment prospects, but stable coins surely aids in fast transaction and I would only advice anyone to hold funds they want to transact in a very short while. Funds are not meant to be held in such forms for long.

[justdimin]

These stablecoins are centralized, so keeping large funds in Tether has high risk. What if they suffer hacks or sanctioned by the government?

This is true, the risks are undeniably present, I'll never recommend stable coins to someone as a long-term investment option, I was only pointing out possibilities to the person I quoted. Not only tether, even USDC, Ethereum and other centralized coins are no investment prospects, but stable coins surely aids in fast transaction and I would only advice anyone to hold funds they want to transact in a very short while. Funds are not meant to be held in such forms for long.

The sad reality is that most of the crypto world is against a CBDC; they hate it, and they do not want it. What is a CBDC? It is literally a stablecoin, backed by the government itself. So instead of USDT or USDC, you have USD but digital. Yet, people are against it; what they are saying, basically, is the fact that they rather trust Tether, a company based in the Bahamas, with all their money- hundreds of billions of dollars- and trust them enough that all of that money is easily withdrawable if needed be. And they do not trust the largest economy in the world to back it.

USA spends as much as Bitcoin's entire market cap, just on interest, every year, and somehow, Tether seems more trustworthy to them than the government. I disagree on that; I feel like we are going to see this change, and we are going to see people finally realise that even though we may dislike our governments, that doesn't mean that some random company in the Bahamas makes more sense to trust.

[slapper]

Consider the GENIUS Act that was passed in the United States last year. They codified stablecoins as dollar-extension infrastructure. Reserves in Treasuries. Yield moves to Washington.

What is the fate of a nation that fails to create its own? Obviously their people are still using stablecoins. But they take on USDC. USDT. Worse, even nobody made that decision, but it was done so by aggregate user behavior. Digital dollarization by convenience.

Whoever builds the infrastructure of a given era does not just win. They establish a set of rules that all others must abide by. Britain had shipping routes. The dollar reserve system and semiconductor supply chains were acquired by America. The next step in that is settlement rails and programmable money. There is a large number of governments that are considering this as a tech policy issue, whereas it is a sovereignty issue.

Now the Musk thing. "Money will not matter by 2036". I mean, maybe? Stablecoins are already being used in transactions with AI agents. Structurally, traditional banking mechanisms cannot deal with machine-to-machine payments. "Money becomes irrelevant", however, is a statement of post-scarcity but we are not yet in the post-scarcity era. We are getting to lower costs of production. Wildly different thing. Musk merges them together all the time.

[Antotena]

People are currently paying more attention to digital currencies than local stablecoins. With technology, people are improving their quality of life and digital currencies. Although we heard Elon Musk say a few days ago that local currencies may not be used in a few decades. Although I think this is not happening very soon because local currencies cannot be easily made to disappear, rather they will remain but on a smaller scale. In most countries of the world, due to the advancement in technology, everything is being done online, due to which the digital economy is moving forward a lot. However, it is not the case that just launching a local stablecoin will make the digital economy stronger, but rather, it requires infrastructure-reliable technology. In any case, it is expected that local stablecoins can be a strong foundation in the future digital economy.

You know what I don't like about billionaires, when they attained some stage in their life, they begin to think with their leg and not their head. How can currencies disappear or does he think that half of the world have access to the internet or does he things that everyone go to the school to understand how the digital money will be easy to use. I love to see adoption of digital currency but I want to see it in a reasonable way, this is too much exaggeration or maybe he thinks the world is only USA.

We have heard about CBDC before, the government wanted a stable coin they can control but as I'm having this conversation with you, there is no country that is using it today, even tye BRICS that was push with different missions and visions has went silent, that's to tell you that digital currency is not going to have mass adoption because half of the world is not going to use it. We may see such developments in big countries but certainly not in rural areas.

[Bushdark]

These stablecoins are centralized, so keeping large funds in Tether has high risk. What if they suffer hacks or sanctioned by the government?

Almost all the stablecoins are centralized and controlled by the government. Holding too many stablecoins in our wallet can post a risk of getting freeze if there is any mixup that can make the government to lock the coins without our approval.

This is true, the risks are undeniably present, I'll never recommend stable coins to someone as a long-term investment option, I was only pointing out possibilities to the person I quoted. Not only tether, even USDC, Ethereum and other centralized coins are no investment prospects, but stable coins surely aids in fast transaction and I would only advice anyone to hold funds they want to transact in a very short while. Funds are not meant to be held in such forms for long.

Almost all the stablecoins are pegged to the US dollar and many investors don't see it as investment since their prices do not fluctuate at all. Volatile coins are the ones investors are seeing as means of investment since they can buy them when their price are low and sell them when their price go up. I can make profits from my Ethereum or Solana once the price went above the price I bought it and this can take a period of days or weeks.

[WillyAp]

Almost all the stablecoins are pegged to the US dollar and many investors don't see it as investment since their prices do not fluctuate at all. Volatile coins are the ones investors are seeing as means of investment since they can buy them when their price are low and sell them when their price go up. I can make profits from my Ethereum or Solana once the price went above the price I bought it and this can take a period of days or weeks.

The majority, my guess is saving their funds due to their own currency suffering an even higher devaluation than the US$.
In most parts of our world you have no free access to the USD, so the people wishing to safeguard choose Binance, Airtm, Kraken and those services accepting their IDs.
 

[Hamza2424]

Digital economy is the future, so many eras in human existence has passed and the country or regions that has found a way to be ahead in any era has been the most influential.

The other time Elon musk strongly believe that we will not need money in ten years from now, because Ai could cover our needs, he may be wrong but we can from it pick that the world economy will depend on its digital prowess.

What effect can having a local stablecoin on the countries digital economy.

Stablecoins have helped the US dollar because many major stablecoins on blockchains are backed by US dollars, so as demand increases, more dollars may need to be held as reserves. But if a country doesn't have such a system, and the audits are unreliable, then pretending everything is fine could create serious problems for its local currency.

But issuing a token does not magically improve a country's digital economy. If the local currency is weak, putting it on a blockchain is not going to make it more widely demanded or competitive with the dominant ones.

Countries should focus on their real advantage, which is payment infrastructure that can, in turn, help with remittances and help people save a lot on foreign currency conversion fees when sending money from other countries. They should not confuse digitizing money with creating a stronger economy.

[Joy_learns_crypto]

If Elon Musk thinks money would be useless in future, he should lead by example and give all his money to charity or do give away on X, I dislike like when elites try to mislead the lower class whereas they're busy filling their purse and maintaining their wealth, why don't he give out all he has so I'll believe he's serious. Talking about stablecoins, does it offer inflation hedge, does it add value to my money overtime? If it doesn't do those then count me out, maybe CZ should convert his Bitcoin or BNB to stablecoins.

If he does that how will he survive till the future? I understand that Elon musk has made predictions and they were wrong but this is just another of his prediction and that should not mean he start to throw all of his money away.
I concur with you that the wealthy are most of the times manipulating the poor to do something but they always end up doing the opposite of that very stuff but I think Elon musk here is just being a big fan of Ai as he has always been.

[Abiky]

Because a stablecoin is easier to get, easier to transfer, easier to convert.
Easiness is the sole common dominator, always has been always will be. 

That's the problem. Convenience has taken us a step backwards. Not forward. Why? Because governments and central banks are ending up with more power than ever. The dream of Bitcoin transforming the mainstream economy, appears to be a distant one. While many would argue BTC's main issue is volatility, they're aren't considering the fact that the world still relies on Fiat as the standard unit of account. This means everything will be valued against Fiat. If BTC would've taken Fiat's place, volatility would become a thing of the past. 1 BTC = 1 BTC, right?

I'm afraid stablecoins will continue to gain traction until they become the world's new "de-facto" digital currencies. With this, why re-invent the wheel by launching CBDCs? Better be prepared for what's coming in the future, just in case.

[MadSl1m]

The thread is arguing whether stablecoins strengthen a national digital economy, and the spending leg keeps getting skipped. That's where the sovereignty question actually gets settled.

I keep a catalogue of crypto cards and read the issuer paperwork behind them. Of the 138 you can obtain today, 137 name Visa or Mastercard, and the one exception doesn't disclose its network at all. So a person in an emerging market paying from a stablecoin balance is still settling over two American card networks, under an e-money licence granted by a foreign regulator. The coin replaced the correspondent bank. The rails stayed where they were.

That's not theoretical. Poland's KNF revoked Quicko's payment-institution authorisation on 21 January 2026, and CEX.IO's card stopped working on 3 February. The issuer was the point of failure. Local stablecoins would need domestic acceptance and a domestic issuer to change that, and neither of those comes from the token design.

[alastantiger]

stablecoins fill in the gap left by the banking scene.
Banks went more restrictive, Stablecoins are easy to get, save to safe, a good storage but they are not crypto.
Stablecoins obey the rules of a master.

Stablecoin just like the cryptocurrency has helped alot and even made some economy more functional because the money been spent all came about because of the crypto currency market that the stablecoin are operating under. With stablecoins we would not have had a wide adoption of crypto currency because people were sacred of their volatility and that is why not many people were able to invest but now that that has been solved with stablecoins, as we are beginning to see more people get involved.

People now hold their profits in stablecoin when the market is falling and this gives investors more trust that they would not lose their investment so they can now go ahead and invest. Stablecoin are playing a big role in the adoptions of the digital economy and it can be observed with the high rate of transactions that are being done making use of stablecoins instead of other cryptocurrency and that is because people trust stablecoins and they are doing the job perfectly, without stablecoin, I do not think we would have had a good digital economy.