Are stablecoins soon illegal?
Central banks are pushing for strict regulation of centralized, privately issued global stablecoins. Fiat-anchored crypto-currencies are being scrutinized based on the recommendations of the Financial Stability Board.
Stablecoins like tether are extremely popular with many people in the crypto sector. Tether has a market cap of approximately $6,370,234,959 and a larger 24-hour volume than Bitcoin. Many use such stablecoins to either send from one exchange to another or to cash out of Bitcoin and Co. without going into the dollar. This has some advantages.
On 14.4.2020, the Financial Stability Board (FSB) published a document dealing with the regulatory, supervisory and oversight challenges posed by global stablecoins.
Financial Stability Board is hosted and financed by the Bank for International Settlements (BIS). Its members are representatives of the finance ministries and central banks of all G20 member states and ten international organisations, including the IMF, BIS, ECB, World Bank and European Commission.
It concerns the Stablecoins which are commemorated with Fiat currency. Many companies, like MakerDAO, have based their entire business model on Stablecoins and it will be very exciting to see how it all develops — positively or negatively?
For me and all those who have been following me for a long time, it was relatively clear that sooner or later this will happen and that this “jungle” will not continue unregulated forever.
So what is the impact of all this on Bitcoin?
For me it is as always clear to distinguish between value and price. As with the last crash in March, it is important not to listen to the screamers out there, but to go behind them with a clear head and question what the effects might be.
Like this crahs, the value of Bitcoin hasn’t changed, no big change in technology or any other big change. For this reason, the price has only changed in the short term, but nothing in value.
And I see exactly the same thing here with this issue. There could be fluctuations now in the short term, but the value of Bitcoin has not changed. So I am very positive in the long term and that this has not been very important in the long term.
Now I would be very happy to hear your opinion.
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