https://blocklr.com/guides/stablecoin/
Ok if you have been living under a rock and ask, "What Is a Stablecoin"?
"Incredibly popular but highly controversial, stablecoins are among the most talked-about topics in the cryptocurrency world. They offer a great way to further the adoption of digital currency, they’re ideal for payments or as value stores, and as the name implies, they’re capable of avoiding the immense volatility risks of the cryptocurrency market."
Simply put swap to the pegged 'currency' but stay inside the crypto atmosphere without withdrawing into fiat i.e. dollar, yen, etc..
1:1 price ratio
So why would these 'coins' be attacked by the legacy system? Well to be frank it's not in the control of the issuers of fiat. There is of course questions of how these stable coins are backed. I'm sure the SEC (securities exchange commission) makes sure that the US dollar is backed by sound assets, but I digress.
"SEC Chairman Gary Gensler wants more authority before Congress works out how best to regulate the cryptocurrencies".
The report will also ask Congress to detail how stablecoins should be regulated in the same way bank deposits are.
SEC Chairman Gary Gensler reportedly pushed for changes.
Gensler is seeking to make clear the government will take a more active role in stablecoin regulation in the short term while awaiting legislative changes in the long term, according to the report.
There are many different stable coins. If you are American this is probably a big question considering HBD (Hive backed Dollars) is attempting to be a stable coin. It is in fact not 1:1 as we have seen as it's price continuously fluctuates. At the end of the day in my opinion this has nothing to do with making sure anything is backed properly. The whole Federal Reserve, and US debt based system is a huge ponzi scheme. It's calling the kettle black.
https://idioms.thefreedictionary.com/the+pot+calling+the+kettle+black
"A situation in which a person accuses someone of or criticizes someone for something that they themselves are guilty of."
In the end it is about control and eliminating competition. We are without a doubt in serious trouble economically world wide. When control is in doubt, tighten grips to keep in power become more of a reality. Unfortunately this is the situation we are in and it was very predicable. I had written about this months ago.
Choice in what to do when stable coins are controlled does make cryptocurrency itself what it was originally meant to be. Stable coins make it quick and convenient for trading and profits. I'm not sure if when Satoshi created BTC his original ideal was to have a crypto pegged 1:1 to the USD. In either case I will eventually just be HODLing Crypto and if stable coins make it impossible without extracting a urine sample; we do have the chance for peer to peer transfers either way.
Posted Using LeoFinance Beta
SEC wants authority over everything. I wonder how it can ever get authority over Hive...
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Attack witnesses within jurisdiction. US citizens maybe?
The world is going digitalized and crypto is part of that movement. BTC, Bitcoin and the rest well soon be adopted by many countries as their currency as already done by El-salvador. Thanks for sharing facts about stable coins.