Here is our pick of the 3 most important Stablecoin news stories during the week.
What happens if Stablecoins win!
Privately issued stablecoins have now proven their ability to extend access to the dollar in brand-new markets or previously partly dollarized economies such as Argentina or Venezuela. So, far from weakening the US Dollar’s position as a reserve currency, the evidence is that they are strengthening it.
Thus far all this success has been achieved with no regulatory support. But that is about to change. Or is it? Maybe regulators are just making noise while they discover how hard it will be to put in place meaningful and useful regulation.
Can stablecoins do more than just provide efficient money? A new world of Algorithmic and DeFi stablecoins are offering Yield, Collateral and super fast payment rails.
Only time will tell if stablecoins are not only here to stay but will win. Without doubt, Stablecoins combined with DeFi, offer features and benefits that our legacy financial system can’t even dream of. Will this new world of innovation live side by side or as an extension of the other? Or will Regulators insist on Banks running the show to the detriment of one side or the other?
Alan Scott is an expert in the FX market and has been working in the domain of stablecoins for many years.
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