Because of their connections to less volatile assets, stablecoins are purportedly safer than normal bitcoin, but US authorities aren’t persuaded. According to Bloomberg reports, the Treasury Department and other federal authorities are about to enact a stablecoin ban due to the Financial Stability Oversight Council’s investigation. Authorities are afraid that digital money is highly uncontrolled and, as a result, might disrupt rather than safeguard the financial system.

Tether is seen to be the most concerning issue for a Presidential Working Group on Financial Markets. The digital currency’s owners claim that owning significant quantities of corporate debt helps to stabilize their finances. However, as per Bloomberg, this might be subject to hectic investor runs if bitcoin values plummet.

Stablecoin và những điều bạn cần biết về nó - Syndicator

While a formal conclusion isn’t scheduled until December, when the Working Group is scheduled to issue recommendations, a “consensus” in support of an Oversight Council examination is said to appear. If this occurs, the council may classify stablecoins as a danger that requires rigorous control. As a result, several digital currencies may be compelled to modify their business models, if not shut down entirely.

Tether is seen to be the most concerning issue for a Presidential Working Group on Financial Markets. The digital currency’s owners claim that owning significant quantities of corporate debt helps to stabilize their finances. However, as per Bloomberg, this might be subject to hectic investor runs if bitcoin values plummet.

While a formal conclusion isn’t scheduled until December, when the Working Group is scheduled to issue recommendations, a “consensus” in support of an Oversight Council examination is said to appear. If this occurs, the council may classify stablecoins as a danger that requires rigorous control. As a result, several digital currencies may be compelled to modify their business models, if not shut down entirely.

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