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.
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.
Well, not really! I don't see a stablecoin becoming a CBDC with an authorization from the government. A government is a controlling entity. Money supply is one of the most important things that a government wants to control. So no matter how deep a stablecoin penetrates, it can never become a CBDC. A CBDC will always be directly controlled by the government and no one else will have any control on it. That's how a CBDC will function.
Indirectly, a stablecoin can have a good penetration in the market. But it will always be comsidered as a stablecoin and not a government authorized CBDC. There's a huge difference in these two types of coins.