Steve Forbes one of the Forbes Staff members and policy experts reveals that Federal authorities are worried due to the rampant popularity of stablecoins. The future waits for the crypto is the reason that the U.S federal regulatory authorities and government and corporate banks are terrified of the popularity of digital assets: stablecoins. Steve during his video address said that the recent war waged upon the crypto market by the U.S authorities hides the fear that in the future stablecoins can replace the U.S.D.
Stablecoins are unique and unlike other cryptocurrencies like Bitcoins, Ether, Dogecoin and etc., they shiver like a piece of cloth wild wind. The sensitive nature of Bitcoins, Ether, Dogecoin, and other crypto-assets is what makes crypto a highly volatile market. However, stablecoins are unique and unlike any other digital tokens. The primary reason behind the stability of stablecoins is that the digital currency is backed by the USD and Gold. The stable nature of USD and Gold ensures the stability of stablecoins. That’s why not only in the U.S but in other countries as well, stablecoins are acceptable for corporate use. Steve said that stablecoins are really an alternative for cash.
Stablecoins integration with blockchain system cuts out all the complications often being associated with cryptocurrency transactions. People can straightaway purchase goods by using stablecoins. More portentous for political forces and central banks, as stablecoins have emerged as a backup or alternative to the currencies issued by federal banks.
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Steve Forbes the Chairman and Editor-in-Chief of Forbes Media said that there is no need to panic. Some simple regulatory provisions are needed to succumb all the fuss. The issuer of cryptocurrencies must ensure that their assets are backed by the reserves: either in USD or in Gold. In case an issuer is running out of these assets the digital assets will become volatile. An asset that is volatile in nature cannot be perceived as the replacement of U.S.D or Gold.
The way federal regulatory authorities have reacted and tried to cop with the stablecoins is irrational. This raises many questions about the state’s intentions towards the crypto regulations. Crypto experts do believe that regulating stablecoins and other cryptocurrencies is beneficial for both state and society. It will further protect crypto investors against market volatility and bullish trends.
However, if someone thinks that enforcement of the law with force can be beneficial for the regulatory authorities and civil society it can be a costly act. People can’t be pushed away from investing in crypto, cryptocurrencies might not be seen as the replacement for paper currency by the majority of people. But one thing is sure, the crypto market has definitely emerged as an alternative to the traditional market, especially after the covid-19 pandemic.