Stablecoins Are a Compelling Payment Option, But They Need To Be Regulated, Biden Administration Report Says (cnbc.com) 49
Stablecoins, a popular type of digital asset pegged to traditional currencies, could transform the way Americans pay for everything from cell phones and gasoline to haircuts and cups of coffee, according to a long-awaited report released by the Biden administration. From a report: When regulated, stablecoins could "support faster, more efficient, and more inclusive payments options," said the President's Working Group on Financial Markets, which includes several top economic advisors to President Joe Biden. "Moreover," the report reads, "the transition to broader use of stablecoins as a means of payment could occur rapidly due to network effects or relationships between stablecoins and existing user bases or platforms."
Still, Biden's economic advisors said Congress must introduce regulatory oversight and formal market structure as soon as possible to both protect and inform investors, issuers and exchanges. Specifically, the Biden team recommended Congress pass legislation that limits stablecoin issuance to insured banks, a move that would give regulators far greater jurisdiction over the industry. Senior administration officials told CNBC that their report focuses on risks but that the nation's top regulators think stablecoins offer a compelling digital payments option that needs far more oversight from lawmakers.
Still, Biden's economic advisors said Congress must introduce regulatory oversight and formal market structure as soon as possible to both protect and inform investors, issuers and exchanges. Specifically, the Biden team recommended Congress pass legislation that limits stablecoin issuance to insured banks, a move that would give regulators far greater jurisdiction over the industry. Senior administration officials told CNBC that their report focuses on risks but that the nation's top regulators think stablecoins offer a compelling digital payments option that needs far more oversight from lawmakers.
And there it goes. (Score:2)
When regulated, stablecoins could "support faster, more efficient, and more inclusive payments options," said the President's Working Group on Financial Markets, which includes several top economic advisors to President Joe Biden. "Moreover," the report reads, "the transition to broader use of stablecoins as a means of payment could occur rapidly due to network effects or relationships between stablecoins and existing user bases or platforms."
Faster, more efficient. I can get rid of my money plenty fast without stablecoin.
Re: And there it goes. (Score:2)
Stablecoin == amazon gift card not DeFi (Score:2)
There isn't the slightest difference between any stable coin and an amazon gift card excel that amazon gift cards are backed by a larger reserve. If you have a stabilizer it implies that someone somewhere is holding a reserve that can be used to repurchase coins with dollars or sell coins for dollars. That is there is a central authority you depend upon . The size of that reserve isn't the size of the market cap of the coin. So it's not really stable just Stable within bounds. But the reserve holder ha
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True DeFi means distributed authority not central authority. There isn't anyone who can choose to not back the currency. No central authority to hold a cash reserve .
But with decentralization comes a lack of consensus over what a coin is actually worth. Why is Etherium worth more than Litecoin? Why are the various shitcoins that spring up by the hundreds completely worthless?
The value isn’t based on utility, because functionally most cryptocurrency operates in a similar fashion. The value is based entirely on name recognition and the number of people willing to trade the crypto they hold for a specific amount of fiat.
Re: Stablecoin == amazon gift card not DeFi (Score:2)
Right! Or at least I agree. The conundrum is how does one do distributed stability? For now we can choose between DeFI and backed coins. What's frustrating is both get called crypto while the use of crytpo for centrally authorized coins isn't the same as the underpinning of DeFi in crypto. It's just lip gloss. But maybe someone will figure out how to do both but I don't see how.
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Crypto, in particular stablecoins, is the wrong solution for fixing the shortcomings of the US retail banking system. Much of Europe has had low/zero fee instant transfers for years, even between accounts held at different banks.
Oh God no (Score:2)
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If the Biden deep state ever gained complete control of the US these types of corporations would be running everything.
"But that's not the idealistic communism I wanted"... too bad, you don't get a choice under communism.
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What makes yuo think they aren't already running everything?
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congratulations, you've got banks.
"Banks" are not the problem. Other countries have financial payment systems that are far more efficient than America's. They are still based on payments to and from bank accounts.
The objective is to improve the efficiency, speed, and reliability of the transactions, not to change the end result (money moving from my bank account to yours).
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and if you regulate them to the point where they can't do that congratulations, you've got banks.
And every time someone gets their PayPal account frozen, or a crypto exchange gets “hacked” and coins go missing, it’s a reminder as to why we regulated banking in the first place.
weird? (Score:2)
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it seems as if the US is relinquishing its right to a sovereign currency
It isn't. For tax purposes they consider all that stuff to be the same as dollars, so there's no functional difference as far as maintenance of the government is concerned.
Why allow meta-currencies to exist (such as stablecoins) when you can just create your own digital currency which would also be also bypassing the 2-3% thieves' fees? (mastercard/visa).
It's called lobbying. Are you new?
WTF is "inclusive" payments options? (Score:4, Funny)
When regulated, stablecoins could "support faster, more efficient, and more inclusive payments options
What's this supposed to mean? Did we have a currency system or credit cards that banned gays or blacks or something?
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Poor people, as well as tendin' to congregate outside a lot, also tend not to have banking/credit cards would be my guess.
And then we'd expect these same people to use a cryptocurrency?
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Poor isn't zero money. There is no reason cryptocurrencies can't work for payments of 1 cent or less.
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And then we'd expect these same people to use a cryptocurrency?
Yes. It is an app. You click on it to make a payment.
The difference is that you don't need access to credit to use it.
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Would the also tend to have less access to electronics, and less ability to mine.
you can say everything good disadvantages the poor, if its has any limit on supply, that is what being richer gets you access to more stuff you want.
And even if its free, you can argue its harder for them get the free stuff.
We have one today (Score:2)
Did we have a currency system or credit cards that banned gays or blacks or something?
We have a credit system that already bans people on the basis of ideology [nationalreview.com], so yes.
In case you think that's OK, they are also banning sex workers, so it's not just one ideology, but eventually anyone that falls out of lain with mainstream groupthink.
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Did we have a currency system or credit cards that banned gays or blacks or something?
You have the "or something" option. There are many people with functional smart phones who can't get a bank account.
Re: WTF is "inclusive" payments options? (Score:1)
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Did we have a currency system or credit cards that banned gays or blacks or something?
Gays? No. Blacks? Yes. African-Americans are less likely to have bank accounts and less likely to have access to credit.
87% of white adults have a credit card. 72% of black adults have a credit card.
Credit card statistics by race, age, and gender [creditcards.com]
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So what you are saying is blacks are smarter? Most people shouldn't have a credit card.
If we're being charitable (Score:2)
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Basically dirt poor people or so screwed they can't get bank accounts.
You can be “dirt poor” and still have a bank account. What generally causes a bank to want to have nothing to do with you is irresponsibly spending money you didn’t have. Having a history of walking away from accounts with a negative balance will do it, as will frequently writing bad checks (which is also generally illegal).
Most banks that offer checking/savings account services will continue to do business with you even if your credit score goes completely down the toilet, provided you
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The question is why do banks even allow you to go (unarranged) negative in the first place? Can't you or the bank say we are not lending you any money. Or don't they have systems to enforce that.
I do no know why, because they want to take your money, but really there should be no reason to charge you a fee for a declined transaction, or an un-arranged overdraft fee, does it actually cost them more to decline a transaction, maybe before it was all done on computers but not now. They are agreeing to the overd
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You can be âoedirt poorâ and still have a bank account. What generally causes a bank to want to have nothing to do with you is irresponsibly spending money you didnâ(TM)t have.
BofA, Wells Fargo, Bank of the West, Westamerica Bank, and several others are well known to have performed a scam on customers where they would process withdrawals immediately but sit on deposits for literally days, causing overdrafts. Then they assess overdraft fees on those overdrafts, causing the account to be further overdrawn. If you don't pay them off in a timely fashion, which may not be possible for someone living paycheck to paycheck, then they close your account and send your info to ChexSystems,
Funny (Score:3)
The story above this one is about how a new cryptocurrecy was a big scam and the founders just took off with all the money.
Regulation is the death knell for "stablecoins" (Score:2)
Because the second anyone really looks into what's backing USDT/USDC, this [crypto-economy.com] stops happening fast.
And people would realize the BTC market is nowhere as liquid as reported as well.
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You're saying it would survive regulation by withdrawing from territories where they would be subject to regulation? That would be a likely outcome.
I think the OP was referring to what would happen if they would actually submit to regulation and have their books checked. Given how secretive they've been, I don't think they would pass with flying colors.
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Regulation of crypto is exactly opposite (Score:1)
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The problem is that when you have unregulated crypto the parasites (specifically governments) can't be assured of collecting their vig when a transaction is made. You didn't expect them to let that situation stand, did you?
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If we accept or allow regulation it's going to turn crypto into credit cards or bank accounts and basically make it another avenue for rich to get richer and poor to stay.. poor.
Which is why anyone can grab their pick axe and earn some Bitcoin with an honest day’s work in the mine?
Let’s be realistic, it’s all controlled by the rich. Either you have enough money to buy a shitload of mining rigs and set them up somewhere with cheap power, or you use your existing wealth to manipulate the market to increase your holdings: “OMG, my electric car company might consider accepting this magical unicorn fart coin for purchasing my cars! Pump up that price, suckers
Quantum Stablecoin... (Score:2)
Implemented via quantum blockchain - a distributed ledger where all transactions co-exist with their superpositioned reversals. Now we're talkin' about some awesome accounting. Worked for Theranos... for a while, anyway.
US banks are the problem... (Score:2)
When I opened my current bank account here in Australia, it was with a bank I had never had anything to do with previously (the Bank of Queensland). I was able to open it with a single dollar as the initial deposit and no fees of any kind upfront when I opened it.
And in the time I have had this bank account I have only ever paid fees when I use an ATM that charges fees (which is very rate since I pay for just about everything with EFTPOS or Visa Debit and since there is wide availability of ATMs I can use w
NOPE (Score:1)