Re: Stablecoins will become the next CBDCs

Quote from: Abiky on Today at 07:53:01 PM

Forget CBDCs. Stablecoins are the next big thing. Why bother making a new digital currency from scratch, when governments can already use stablecoins and make it their own? They can introduce laws to help require stablecoin issuers to force KYC/AML compliance and give them complete control of the system. In such an scenario, central banks will cease to exist as monetary policy will lie directly in the hands of governments and corporations.

I think that's precisely what the Trump administration is doing. Trump signed an executive order to prevent the creation of a US CBDC. But the new GENIUS act (meant for regulating stablecoins) could be the path towards making US-backed stablecoins the official digital currency of America. In other words, stablecoins will indirectly become the new CBDCs. I'm talking about Tether USD (USDT), USD Coin (USDC), USD1, and the likes. At least, that's how I see it.

Wouldn't you agree? Share your thoughts/opinion below. Thanks.

Almost all of the powers that you are afraid a government will be able to use with CBDCs, can already be used by Stablecoin issues. The only difference is that private issuers can't force you to use them, while a government can. So when you are using these stablecoins you already accept all the risks that come with it. They can freeze you, they can blacklist you, they can do whatever they want with little legal recourse.

Quote from: Stalker22 on Today at 09:21:50 PM

Governments will never accept something they cannot fully control. Whether its CBDCs or stablecoins, control is the name of the game. The idea that governments would just adopt existing stablecoins and give up their role in monetary policy is naive. Why would they give that power to private corporations like Tether or Circle? They wont.

With privately issues tokens it is much different than with Bitcoin. The government can effectively control them in many ways, but Bitcoin they can't.