Stablecoin News

One of the hindrances to mainstream cryptocurrency adoption is price volatility, as these assets are freely traded in the open market without central administrators tasked with maintaining price stability. The anticipation of potential losses and gains has hindered cryptocurrency’s use as a medium of exchange. Stablecoins, however, are cryptocurrencies designed to maintain a stable value over time, making them ideal for commercial transactions. 

The introduction of stablecoins in the cryptocurrency market ushered in a new wave of liquidity, as exchanges were able to provide trading pairs with tokens representing traditional fiat currencies. 

Stablecoin design takes many different forms, each with its own tradeoffs: 

  • Reserve-backed stablecoins: Cryptocurrencies pegged to the value of a fiat currency held in reserve by a company or consortium. E.g., Tether (USDT), USD Coin (USDC) and Paxos Standard (PAX). 
  • Collateralized stablecoins: Tokens backed by other cryptocurrencies that retain a one-to-one value with a fiat currency through over-collateralization to absorb potential volatility of the underlying assets. E.g., Dai and BitUSD. 
  • Algorithmic (seigniorage supply) stablecoins: Rather than using a reserve or collateralization to maintain a stable value, these stablecoins are facilitated through an automated expansion and contraction of the monetary supply, emulating the role of central banks in the fiat economy. E.g., Basis.
Banking giant HSBC echoes global stablecoin concerns, calling for regulation to be equivalent to its adoption level.
HSBC CEO backs CBDCs against crypto and stablecoins
Helen Partz
"We’ve got a lot of casinos here in the Wild West, and the poker chip is these stablecoins at the casino gaming tables," said Gary Gensler.
SEC chair compares stablecoins to casino poker chips
Turner Wright
Crypto doesn’t pose a big risk for the financial system until it’s adopted enough to be less volatile, the NBU said.
Central bank of Ukraine to promote ‘fair’ Bitcoin regulation
Helen Partz
Market Analysis
Smart contract capabilities are rendering old-school megalithic crypto projects obsolete as blockchains evolve beyond just being a medium of exchange.
Evolve or die: How smart contracts are shifting the crypto sector’s balance of power
Jordan Finneseth
While Tether’s dominance has fallen to 56%, USDC and BUSD have surged to 23.9% and 10.4%, respectively.
Treasury plots stablecoin crackdown even as Tether’s dominance wanes
Samuel Haig
Gold and crypto are often described as an “either or” proposition, but this project aims to give investors the opportunity to gain exposure to both.
Bullish on bullion? This crypto project has a golden proposition
Chris Jones
Market Update
RGT, CRV and SNX saw double-digit rallies after new governance proposals and migrations to layer-2 platforms.
​​Governance proposals and layer-two launches provide a boost to altcoins
Jordan Finneseth
Treasury officials are studying the risks if too many people decide to withdraw their stablecoins all at once.
US Treasury reportedly in talks for stablecoin regulation
Helen Partz

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