Everything new is old again.
Here is our pick of the 3 most important Stablecoin news stories during the week.
This week saw more movement in the new world of stablecoins as Sweden announced trials of it’s CBDC (2nd only to China) and then separately, one of the oldest banks issued a Euro stablecoin. Meanwhile, we had a reminder that the world’s current technology stablecoin the USD is not going anywhere soon.
Sweden, one of the most cashless societies, is moving closer to launching its own sovereign national digital currency. The Swedish government is starting feasibility trials in the form of a review which was launched on Friday as reported Bloomberg. The trials will be led by Anna Kinberg Batra, a former chairwoman of the Riksbank’s finance committee which is expected to commence by November 2022.
A euro stablecoin is being issued by one of the oldest banks in the world and it’s being done on the Stellar blockchain network.
Announced Wednesday, Germany’s Bankhaus von der Heydt (BVDH), established in 1754, is working with tokenization and digital asset custody technology provider Bitbond for the first direct issuance of a stablecoin by a banking institution on Stellar, the companies said.
There’s always speculation that the dollar will be dethroned as the world’s reserve currency. This happens both in the sense that people make speculative claims and in the sense that traders make speculative bets. Whenever there’s a financial crisis—COVID-19, 2008, the dot com crash, the crash of 1987—the speculation gets louder.
However, there are strong network effects of trade and reserves held by Central Banks around the world that will ensure the US Dollar will out last the American empire as the British Pound did before it long after the British empire had withered away.
This excellent article goes into why and how in more detail.
So this week we saw the new form of money, broadly known as stablecoins, advanced further into the mainstream, while we are reminded that the world’s current version of a stablecoin the Fiat USD is not going to disappear anytime soon.
Alan Scott is an expert in the FX market and has been working in the domain of stablecoins for many years.
We have a self imposed constraint of 3 news stories per week because we serve busy senior Fintech leaders who just want succinct and important information.
New readers can read 3 free articles. To become a member with full access to all that Daily Fintech offers, the cost is just US$143 a year (= $0.39 per day or $2.75 per week). For less than one cup of coffee you get a week full of caffeine for the mind.