Does a Fed digital dollar leave any room for crypto stablecoins?
Could stablecoins be undone by a Federal Reserve that takes consumer deposits? Would retail banks be hobbled? During Jerome Powell’s Jan. 11 United States Senate confirmation hearings, Sen. Patrick Toomey posed a question to the incumbent-and-future Federal Reserve chief: “If Congress were to authorize and the Fed were to pursue a central bank digital dollar, is there anything about that that ought to preclude a well-regulated privately-issued stablecoin from co-existing with a central bank digital dollar?”“No. Not at all,” the central banker answered — a response that surely brought some....
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Are algorithmic stablecoins trying to clone the intrinsic qualities of fiat money or dollar; like security? The recent craze over algorithmic stablecoins has stirred mixed reactions from the crypto community. For crying out loud, it has been an emotional contagion for crypto enthusiasts everywhere. So, is it overkill? Are algorithmic stablecoins too ambitious? Suggested Reading […]
Will central banks allow stablecoins to survive? Maybe as a financial instrument for the unbanked or they will be able to peacefully co-exist? There’s a ferment brewing with regard to central bank digital currencies (CBDCs), and most people really don’t know what to expect. Varied effects seem to be bubbling up in different parts of the world. Consider: China’s e-CNY has already been used by 200 million-plus of its citizens and a full rollout could happen as early as February — but will a digital yuan gain traction internationally? Europe’s central bank has been exploring a digital euro....
The SEC’s “crypto mom” Hester Peirce has said the regulatory “movement” around stablecoins needs to allow for “trial and error” and room for failure. Commissioner Hester Peirce — also known as the Securities and Exchange Commission’s (SECs) “crypto mom” — has backed a regulatory framework for stablecoins that allows "room for there to be failure."Speaking at an online panel on May 12 hosted by financial think-tank the Official Monetary and Financial Institutions Forum (OMFIF) Peirce, who has long been an advocate for crypto, was asked to shed light on the actions being taken by U.S.....
Cointelegraph breaks down stablecoins and how they give users a way to safely store their assets without worrying about depreciation. Cointelegraph’s director of video production Jackson DuMont dissected stablecoins in the latest episode of Cryptopedia. DuMont also explored and explained algorithmic stablecoins and the recent incident involving the TerraUSD (UST) and why it was unable to maintain its dollar peg. DuMont defined stablecoins as “a crypto whose value is tied to an outside asset such as the United States Dollar (USD).” According to DuMont, stablecoins are very vital to the....
A great number of digital currencies have swelled in value this year and as the end of 2021 approaches, the market capitalization of all 11,000+ crypto assets in existence is roughly $2.6 trillion. These days, it’s safe to say that dollar-pegged tokens, otherwise known as stablecoins, have a strong presence in the crypto market. Today the market capitalization of all the stablecoins in the world is more than $152 billion or 5.84% of the crypto economy’s USD value.
Stablecoins Have Seen Massive Growth Within the Crypto Economy
Stablecoins have been a hot topic in....