Tag: Stablecoin

A closer look at the evolving stablecoin ecosystem

The rise of digital currencies, exemplified by Bitcoin (BTC), brought a groundbreaking shift in the financial landscape.  However, it also brought to light a critical challenge: price volatility. Bitcoin and many other early cryptocurrencies exhibited extreme price fluctuations, making them difficult to use for everyday transactions or as a reliable store of value. Users recognized the need for stability when dealing with digital assets, particularly when conducting business or holding assets for an extended period. This need for stability in the digital currency realm paved the way for the development…

Fed, BOE officials share continuing interest in CBDCs, stablecoin regulation

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The Federal Reserve Board continues to research a central bank digital currency (CBDC), or at least adjacent technologies, Vice Chair Michael Barr said on Oct. 27. He also touched on stablecoins at the Economics of Payments XII Conference, where his English colleague Sir Jon Cunliffe made his last speech as deputy governor of the Bank of England (BOE). The Fed’s research is currently focused on “end-to-end system architecture,” such as ledgers and tokenization and custody models for an intermediated CBDC, Barr said in Washington. Barr repeated the Fed mantra of…

Cardano Founder Debunks Rumors Of Stablecoin Djed’s Shutdown

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In a definitive response to swirling rumors regarding the possible discontinuation of the Djed stablecoin, Charles Hoskinson, founder of Cardano, firmly stated that not only will the project continue, but it will also receive a significant upgrade. “No, we aren’t dropping Djed. We are supercharging the team,” he announced. Cardano Developer IOG Doubles Down On Djed Djed, an overcollateralized stablecoin by Input Output Global (IOG) and COTI has been under scrutiny due to its unique financial mechanism recently. Specifically, the stablecoin uses Cardano’s ADA token as a reserve, aiming to…

Despite U.S. House Gridlock, Senator Gillibrand Bullish on Stablecoin Bill, Illicit Finance Legislation

“As mainstream finance moves into this space, I think people in Congress are going to see we can’t have our head in the sand anymore,” Lummis said at the same event on Tuesday, suggesting that some lawmakers will be more comfortable with the representatives of traditional financial firms. “When they come into the room where the party’s happening,” she said of the TradFi people, “they bring a lot of people with them.” Source

Stablecoin market escaping US regulatory oversight: Chainalysis

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The United States government may be losing regulatory oversight of the stablecoin market, according to a new report by blockchain research firm Chainalysis. Stablecoin activity has been increasingly occurring through entities that aren’t licensed in the United States, Chainalysis stated in its latest North America cryptocurrency report released on Oct. 23. According to Chainalysis’ findings, the majority of stablecoin inflows to the 50 biggest cryptocurrency services have shifted from U.S.-licensed services to non-U.S.-licensed services since spring 2023. As of June 2023, about 55% of stablecoin inflows to the top 50…

The US Risks Its Position as a Stablecoin Leader

Far too often, regulators, policy makers, and commentators have looked at potential stablecoin regulation and assessed the risks relative those presented by the institutions facilitating these traditional forms of payments. I believe that stablecoins do not present more or less risk, but rather different risks. In one sense, the fully-backed nature of stablecoins can help mitigate against systemic risk and make supervision of their holdings far simpler for regulators than traditional banks. On the other hand, stablecoins present unique operational risks based on their underlying technology and use in new…

What is USDT? All About Tether Stablecoin Cryptocurrency

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USDT, also known as Tether, has become an integral part of cryptocurrency markets since its launch in 2014. Pegged 1:1 to the US dollar, it is the most widely used stablecoin with a market capitalization of over $83 billion as of October 2023. But it is also controversial, with opaque reserves and questions around its long-term viability. Here is an in-depth look at how USDT works, its importance in crypto, and the risks it presents. What is USDT? Overview of Tether Stablecoin Cryptocurrency At its core, Tether functions as a…