Stablecoins war

Our website uses cookies to improve your user experience. If you continue browsing, we assume that you consent to our use of cookies. More information can be found in our Privacy Policy. In the minutes of its 16 December board meeting, published yesterday 27 January , the regulator said it faced an enormous challenge in attempting to regulate more decentralised financial activities. In January , the UK government consulted on its own approach to cryptoasset regulation, with a focus on stablecoins. On 18 January, the government published plans to strengthen the rules on cryptoasset advertisements and protect consumers from misleading claims.

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Content:

• Blow to Mark Zuckerberg's crypto plans as 'Facebook coin project to be sold off'
• USDC to Increase Cash Reserves as Stablecoins Battle for Transparency
• A Member of the ‘Squad’ Takes on Cryptocurrency
• Stablecoins losing the hold to Altcoins in cryptocart. Should you still invest in them?
• Meta abandons its Crypto ambitions
• Why 'stable coins' are no answer to bitcoin's instability

WATCH RELATED VIDEO: Top Stablecoins Compared Side by Side

Blow to Mark Zuckerberg's crypto plans as 'Facebook coin project to be sold off'

Last year, when Facebook officials were hauled in front of Congress to defend their plans for a cryptocurrency called Libra , they arrived with a pitch about financial inclusion. With Libra, people anywhere in the world would have access to a common payment network, they said, whether or not they had access to a bank.

All it would take was a phone and a Facebook account. Her Detroit district, the third-poorest in the country, is populated with the very unbanked people Facebook executives were describing. In the past, they had been promised faster tax returns, paycheck advances, or check cashing without a checking account. But these offerings came with little regulation, and often with excessive fees or interest rates.

Now, here was Libra, a cryptocurrency that also seemed poised to fall through the regulatory cracks, backed by an industry with a lot of power and data. She wondered if this was the next iteration.

Not familiar? Eyes glazing? Stablecoins are a form of digital currency that, as the name suggests, hold a constant value. Stablecoins were initially used to help with buying and selling volatile cryptocurrencies like bitcoin.

But increasingly, some stablecoins, like Libra, have been proposed for more common uses, like paying for actual stuff. The problem is that stablecoins are not much more familiar to members of Congress and regulators than they are to you and me. In the Facebook hearings last year, everyone seemed to want Libra to be regulated, but the unanswered question was how. So this week, Tlaib introduced a bill , cosponsored by representatives Stephen Lynch D—Massachusetts and Chuy Garcia D—Illinois , that offers a possible solution: requiring stablecoins that promise a fixed value in US dollars to be issued by banks.

That, the legislators argue, constitutes taking a deposit, which is something only banks can do—not tech companies nor the associations they set up to issue coins on their behalf. This year, while we were worrying over social distancing and reproduction values, Libra went through major changes. Libra also abandoned a plan to eventually let anyone build services on its network, a feature that raised money laundering concerns, in favor of a closed system controlled by its official members.

Oh, and there were a few naming tweaks along the way. And earlier this week, Libra itself—both the currency and the association that issues it—became Diem. Got that? Novi deals Diem. The initial Libra model raised plenty of red flags for regulators, but the most obvious stumbling block was that a coin backed by a bundle of assets, including dollars, euros, yen, and bonds looked to some like a security.

Declaring it so would kick in regulations that would make it impractical as money. But the new Diem model, where one Diem dollar represents one US dollar, looks more like moving money within Venmo or Square. A Financial Times report this week suggested Diems could be issued by the Diem Association as soon as January, pending approval from financial regulators in Switzerland, where it is based.

By Klint Finley. Requiring stablecoin issuers to be banks would erect a much bigger hurdle. Big tech companies like Facebook are largely shut out of obtaining bank charters, because of traditional barriers between banks and retailers, as well as antitrust scrutiny that such a move would likely raise.

Another option would be to ask a bank to issue Diems. Facebook, however, is not the only company interested in stablecoins. If the bill were enacted, a small but growing industry of stablecoin issuers would likely need to rethink their strategy. As acting comptroller, Brooks has advocated for more flexibility for non-banks that want to provide digital payment options, including stablecoins.

She would prefer to see digital coins issued directly by the US government—which could be accessed by individuals through accounts at local post offices or directly through accounts at the Federal Reserve. It could be a way, for example, to get Covid relief should that ever happen again to people sooner than mailing checks.

The important thing, as she sees it, is to level the playing field at the start. Will such a bill pass in the tumultuous final weeks of the Trump administration? The legislators plan to reintroduce a version of the bill next year. The cryptocurrency represents amazing technological advances. Bitcoin has a way to go before it's a a true replacement for, or even adjunct to, the global financial system.

Staff Writer Twitter. Topics bitcoin cryptocurrency Facebook congress Regulation.

USDC to Increase Cash Reserves as Stablecoins Battle for Transparency

Altcoins have proven extraordinary progress over the previous 12 months as extra folks begin to undertake and perceive the know-how behind them. Names reminiscent of Ethereum, Solana, Polkadot and possibly even some lesser-known ones like Terra and Binance Coin have gotten extra recognisable. However what do they actually do, what units them other than Bitcoin and, extra importantly, from one another? A sensible contract refers to a pc programme that lives on the blockchain. These programmes robotically run or execute particular actions when predetermined circumstances are met. Consider it like placing cash right into a merchandising machine to purchase one thing. Good contracts have turn into a game-changer within the cryptocurrency market and have created one of many greatest sectors in crypto, Decentralised Finance DeFi.

A Member of the ‘Squad’ Takes on Cryptocurrency

Crypto halal list. The ifg halal crypto list. Then trading or investing in crypto should not be deemed to be. There are many games that we download, and in the game there is crypto currency that we The other country in the list is the rich oil producer nation of Venezuela. Please choose a lower amount. The report ranked countries based on several metrics including total crypto activity weighted by purchasing power parity per capita. For the majority, they claim that it defies the Islamic faith.

Stablecoins losing the hold to Altcoins in cryptocart. Should you still invest in them?

As stablecoins continue their path to maturity, many projects are increasing their transparency to appeal to institutional investors. Just recently, Circle, part of the consortium behind USDC, announced it will build its stablecoin reserves entirely of cash and short-duration US treasuries. This comes just months after Circle and Tether were accused by Paxos of essentially being unregulated and opaque in their practices. Transparency has become the most sought-after metric within the stablecoin industry.

Meta abandons its Crypto ambitions

Stablecoins are second generation cryptocurrencies, aimed at maintaining their value stable with respect to official currencies. The most famous example is perhaps represented by libra, the cryptocurrency announced by Facebook in and yet to be issued; the most widespread is tether, with a market capitalization of almost 10 billion dollars and a daily transaction volume of almost 50 billion dollars, which makes it the most used cryptocurrency. The diffusion of stablecoins is hardly surprising. By minimizing volatility — the main flaw of first generation cryptocurrencies, including bitcoin —, stablecoins are expected to play an even more important role on a global scale within a few years. Our contribution deals not with the economic, but specifically with the geopolitical factors that could foster the use of stablecoins for strategic and military purposes. In particular, we focus on how such payment instruments, together with other alternative electronic payment systems, could be used as a means to circumvent economic sanctions and ultimately as a challenge to the hegemony of the US dollar in the international monetary system.

Why 'stable coins' are no answer to bitcoin's instability

Altcoins have proven extraordinary development over the previous 12 months as extra folks begin to undertake and perceive the expertise behind them. Names akin to Ethereum, Solana, Polkadot and perhaps even some lesser-known ones like Terra and Binance Coin have gotten extra recognisable. However what do they actually do, what units them other than Bitcoin and, extra importantly, from one another? A sensible contract refers to a pc programme that lives on the blockchain. These programmes robotically run or execute particular actions when predetermined circumstances are met. Consider it like placing cash right into a merchandising machine to purchase one thing.

W hile the mania for cryptocurrencies may have peaked, new units continue to be announced, seemingly by the day. Viable monies provide a reliable means of payment, unit of account, and store of value. But conventional cryptocurrencies, such as bitcoin, trade at wildly fluctuating prices, which means that their purchasing power — their command over goods and services — is highly unstable.

In the past three weeks, two of the biggest names in DeFi — Andre Cronje and Daniele Sestagalli — have been hyping up crypto twitter on an upcoming collaboration project to be launched on Fantom. This clunky term is derived from a combination of mechanics from two popular DeFi protocols: Curve Finance and Olympus. The 3,3 term is a game-theoretic element that states the mutual benefits for both users and developers to keep their tokens staked into the protocol, thereby creating a positive-sum game for both parties. No fundamentals changed, just mass belief.

Facebook's cryptocurrency experiment is a tale of what could have been. Diem Association is winding down under regulatory pressure, the Wall Street Journal reported on Wednesday, less than three years after the digital asset group's splashy launch. The involvement of the social network, whose parent was renamed Meta Platforms, proved toxic. It's a missed opportunity to make cryptocurrencies respectable. Diem's obituary was being written from the moment Facebook unveiled the effort in Mark Zuckerberg's firm had gathered some of the biggest names in payments including Visa, PayPal and Stripe, to launch a cryptocurrency then known as Libra. The group eventually decided to issue a so-called stablecoin , backed by the US dollar and other currencies, which would facilitate digital payments without the volatility of digital tokens like bitcoin.

Stablecoins have emerged as a major part of the digital asset ecosystem. Cindicator Analytics has reviewed the most prominent stablecoins and summarised its findings in a single infographic. The definition of a stablecoin is straightforward: it is a cryptocurrency that aims to have the lowest price volatility possible.