Despite the threat of a government shutdown, legislation surrounding the emerging cryptocurrency, stablecoin, is looming. This could have immense implications not only for digital currency markets, but for finance as a whole.
As stablecoins continue to rise in popularity, legislators have been faced with an unprecedented challenge in regulating the asset. Kristin Smith, head of external affairs for the Blockchain Association, explains why the regulatory framework has been slow to catch up.
Investors have been migrating away from stablecoins, the go-to crypto asset often seen as a safe haven for navigating the volatile world of digital currency. As leading stablecoins experience an exodus, what is causing investors to flee?
Turkey’s new lira-backed TRYB token has become the world’s second-largest non-dollar-pegged stablecoin, offering an alternative to traditional currency for users worldwide.
An analyst claims that Tether’s USDT, a stablecoin backed by the U.S. dollar, has an “unstable peg” and does not effectively eliminate volatility. They allege that this could have implications for the entire cryptocurrency market.
Prime Trust, a blockchain infrastructure provider, has lost $8M from an investment in the failed Terra stablecoin. CEO Aaron Brown said the affected funds were “allocated to the project as an upfront investment into its potential success”.
The Federal Reserve released a new financial product, the “stablecoin note,” to address the issue of bank runs and to facilitate reversible transactions. The note is the first of its kind from the Fed and is an important step in modern banking.
PayPal recently announced its launch of a new digital currency, a stablecoin. We explore its potential impact and user reactions to this new form of payment.
PayPal is causing waves in the crypto world with its recent launch of its new U.S. dollar-backed stablecoin – the first of its kind for a major payment service provider. While it promises fast and cheap payments, some experts are expressing concern around the cryptocurrency’s centralised nature and lack of user control.