on the crypto
The Fed's report is printed twice a year, once in the spring and another in the fall, and its current edition includes this chart below from page 67, which ranks cryptocurrencies / stablecoins as the fifth most serious risk to the financial stability - hidden between the United States - Tensions in China and climate problems.
The section of the report regarding stablecoins described them as digital assets issued and traded on blockchain, which are "assumed" to be anchored to a stable off-chain asset such as gold, fiat currencies or government bonds. The report also noted that the value of stablecoins has quintupled exponentially over the past 12 months to reach $ 130 billion in October 2021.
Whether or not the specific stablecoin threats are real or exaggerated FUDs, they were real enough to be included in this report by Fed members. However, it could be convincingly argued that all four bullet points cited as stablecoin vulnerabilities could also apply to most fiat currencies, including the US dollar. This is especially true when viewed in the context of the government's fiscal and monetary policies in recent years.
As stated in the last paragraph, the risks and criticisms they associate with stablecoins can also be applied to fiat currencies.
It is ridiculous that the Fed believes cryptocurrencies and stablecoins are as much a threat to US financial stability as US-China tensions and global warming.
The government sees stablecoins as a threat to its sovereignty. Their opposition to stablecoins is a good indicator that stablecoins are a good idea for us.
Cryptocurrencies have revolutionized the world of economics and investment, offering a decentralized alternative to traditional…
Milkomedia-C1 announced the integration of the DJed stablecoin network on its platform. Milkomeda C1, a…
Cryptocurrencies have gained immense popularity over the last decade, attracting investors from all over the world. However,…
The former cryptocurrency exchange FTX was based in the Bahamas. The island nation has not been…
As Shiba Inu adoption skyrockets, the memecoin and the entire Shiba ecosystem…
The adoption of digital currencies such as Bitcoin has continued to grow unabated. Many…