If there is one form of these cryptocurrencies from hell that worries regulators it is stablecoins. Digitized versions of traditional currencies often backed by the dollar. But who do not have in any way the authorization to claim this status, even if they have all the appearances of it. Because entering the very closed monetary club of this world requires meeting certain criteria. And this is not calculated either by the success or even by the simplicity of making it a cross-border currency-type medium of exchange. And it is Chrtistine Lagarde, current President of the ECB, who explains this once again.
The current evolution of cryptocurrencies sees the emergence of stablecoins. Trading tools, the development of which was initially used for the exchange and resale of these digital assets. But also to the storage of funds outside the volatility of the markets while remaining under the radar of the tax services. Because changing your BTC to USDT does not involve anything other than simple manipulation on an exchange platform within the crypto zone. But switching to USD or euros triggers the capital gains machine and inevitably awakens the spectre of the flat tax.
And what used to be mere trading tools is now taking on a much more important form. A finding that could be measured by the numbers of the development of these stablecoins. But that it is more interesting to put in relation to the fear they trigger in the monetary regulators of this world. This makes it possible to see their repeated prohibitions and warnings as the true measure of the monetary potential they represent. For only dangerous enemies deserve such cunning to undermine the barely built foundations.
Stablecoins (are) (not) currencies
And at the top of the list of motivated critics against cryptocurrencies is Christine Lagarde, current president of the European Central Bank (ECB). The latter always very motivated to explain how Bitcoin is not a currency, except to buy drugs and weapons. And how stablecoins alone will destroy a global economy that is doing so well thanks to current policies. Especially since the latter “present themselves as currencies” when they are only assets “to be supervised by regulators”. It is not necessary to confuse everything and maintain at all costs this essential difference that separates white cap and white cap.
« If customers prefer to use digital currencies rather than having banknotes and money available, this should be available. ( … ) We must meet this demand and have a European solution, secure, available and on user-friendly terms that can be used as a means of payment. “- Christine Lagarde
Stable digital currencies that must also go through its veto right to exist in a form backed by the euro. Which is to say that they will never see the light of day other than in the form of a digital euro that still sleeps in the boxes. But whose implementation is presented by Christine Lagarde as responding to a request from her “customers” … which will find an effective implementation in two years.
Should it be explained to him that stablecoins users will certainly not be those of his digital euro? Because it is only regulators to consider that paying with an asset is different from paying with a currency. Especially when this distinction emanates from their services. And that the cross-border use of the former makes it possible not to have to suffer the exorbitant fees applied to the latter. What should not change with the digital version of the euro used as currency.
Stablecoins with controversial reliability
Of course, stablecoins are not identical to FIAT currencies supported by a central bank and imposed in the geographical area that depends on it. But is this really a problem ? And the real objective would not be to be able to develop them outside the relative “stability” that the dollar no longer even represents. A question to which Christine Lagarde provides a very oriented answer. This by not failing to refer to the “very recent stories” that have shaken the credibility of the two main stablecoins what are USDT and USDC.
« This must be verified, supervised, regulated so that consumers and users of these devices can really be guaranteed against possible misrepresentations. I think very recent history has shown that these reserve currencies are not always available and as liquid as they were supposed to be. “- Christine Lagarde
A reference that relates to the thorny issue of their dollar reserves expected to meet the 1:1 ratio in actual cash. And that suffers from a lack of visibility and guarantees that undermines their reliability in the long term. But in the end no more than a dollar for which the US Federal Reserve (Res) would be unable to settle the entire quantity currently in circulation. Which is not necessarily the best point of comparison to defend these stablecoins. And obviously the flaw to be plugged in their current development.
