Stablecoins: How do they work and what is their impact on the cryptocurrency world? – Business
In recent years, stabulcoins have been popular as an alternative to very volatile cryptocurrencies. But, In Europe, the growth of stablecoints also aroused concerns In relation to monetary sovereignty and elasticity of the European economy.
Philip Lane, at the European Central Bank (ECB), the economist, Are forward with European digital currency, which allows you to protect from the losses of Stablecoints and reduce relying on US companies in the payment fieldReported A Bloomberg.
But after all, What is Stabulcoins and what is your role in the crypto ecosystem? What risks do investors and economies bring? We have collected a set of questions and answers to understand the theme.
What are stablecoints?
AS Stablecons are born from fears around the volatility in the value of cryptocurrenciesGuaranteed to be a more stable alternative. Although they are also working on Blackchain, usually, Stablecoints are connected to a reference property that is official currency such as the dollar.
They have one of the largest benefits suggested to stablecoines In a ratio of 1: 1, direct correspondence with the principle reference propertyIn a connection to reduce the risk of volatility.
Also, to ensure stability, The reserve should be organized equivalent to the number of tokens issued by stablecoints broadcasters. This logic applies to centralized stabulcoinThat is, people with a single emitter will inform the coins that are regulated by central banks. One of the most popular examples Tether (USDT), USD Coin (USDC) and Paxos, all connected to the dollar.
Note-I know There are also stablecoines, they use algorithms to maintain their value with another type of stable assets (or objects), gold and othersIt acts as a “digital central bank”, automatically adjusting the amount of circulation.
Are stablecoines safe?
Stablecons are designed to bring more stability to the universe of cryptocurrencies, But they are not that risk -free. One of the main ones Confirm that they have a reserve to support every digital currency issued.
Although these entities are subject to audits, There are instances where some broadcasters do not comply with direct correspondence between tokens and reserves. In addition, the Transparency issues about reservations increase doubts about their ability to maintain stability in more complex situations.
For example, see the Stabulcoin Terra fall case European Central Bank. ECB also warns If popular stablecoin loses its value or failure, infectious losses will be successful if the cryptocurrency market or even affects the “traditional” economy.
What is the size of the Stabulcoins market?
According to the platform data DifferAt the moment, Stablecoins market is worth more than 240 billion. The market is headed by Tether (USDT), with about 145 billion capitalization and 60 billion USD Coin (USDC).
Expectations to continue, especially if it is driven by more connectivity with clear control and financial institutions, recently pointed out Do Bonco City.
According to these instructions, the Stablecoins market is expected to reach a 6 1.6 billion brand by 2030. In a more optimistic scenario, the value reaches $ 3.7 billion.
Are stablecoints being controlled?
Since the Stablecoins market has begun to express further, Regulators have also started working in response to concerns of consumer protection and stability of the economy.
In the European Union, Control Mica (Markets in crypto assets) It is designed to control cryptoons, as well as problems and service organizations in the area. Control, which The law in 2023It wants to bring more security and ability attendance to operator and customers, as well as greater transparency.
AS Mica rules also cover stabulcoins, which have specific responsibilities. No. Last yearWere, and,, and,, and,, and,.. Rules on two types of stabulcoons have been implementedAs art (token mentioned by property) e EMT (e-Money token).
What differences do you have regarding the digital currencies of central banks?
With the growing popularity of stablecoines, vCentral banks have begun to look at national digital currencies more carefully (Or CBDC on the aconim in English). Here, the goal goes to modernize the payment systems, making them more effective and safe, but maintains monetary control.
AS The CBDC is confirmed as digital records of the country’s trusted currencies and is separated from stablecoin because they are issued and directly guaranteed central banks. National digital currencies are still under study or test in most countries.
In Europe, for example, the ECB recently pushed forward with a platform Imitate payments with digital euro.
There is an initiative Sharing 70 companies, including companies that offer traders, financial products and services, startups, banks and other payment providers.
Participants joined one or two working areas, “pioneers” and “foresight”, each with specific goals. In a report later this year, the ECB publishes two working groups.
