Here is our pick of the 3 most important Stablecoin news stories during the week.
Here comes the grand old lady of stablecoins!
But first some pain from the exciting new world of innovation. A stablecoin on the Solana blockchain has been exploited for around $52.8 million and lost practically all of its value.
Cashio Dollar (CASH) is an algorithmic stablecoin that was launched by a developer called 0xGhostChain in November 2021. Anyone can mint tokens by depositing liquidity tokens for the two stablecoins UDST and USDC from the Saber platform. They can redeem the stablecoin for the underlying liquidity tokens.
Meanwhile, in a landmark transaction, ANZ Bank has created a stablecoin pegged to the Australian dollar, reducing the risk of buying digital assets for its client Victor Smorgon Group and encouraging more customers towards crypto.
It is the first time an Australian bank has minted a digital asset linked to the value of the Australia dollar, and may be the first time a bank anywhere in the world has created a stablecoin that has been used in a real transaction.
In further evidence that Regulators are getting serious about bringing Crypto within the regulatory perimeter, the Bank of England made a major announcement.
- Setting a June 3 deadline for banks to set out crypto plans
- Regulators to consult in 2023 on stablecoin rules
- BoE says regulators likely need new powers
The sector globally grew tenfold between early 2020 and November 2021, and now stands at $1.7 trillion or 0.4% of global financial assets, with over 17,000 different crypto asset tokens in circulation.
Regulation for the sector should be based on “equivalence”, meaning that crypto-related financial services that perform a similar function to existing financial services should be subject to the same laws, the FPC said.
So in summary an innovative stablecoin runs into trouble, a Bank in Australia takes a step forward and the grand old lady of Banking (otherwise known as the Bank of England) prepares to step into the fray.
Alan Scott is an expert in the FX market and has been working in the domain of stablecoins for many years. Twitter @Alan_SmartMoney
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