Recently it was revealed that the G7 were all in full agreement that the time has now come to discuss regulating cryptocurrencies. To many of us in the crypto community, this was never a matter of if but when; and now we have our answer. Lead by current US Treasury Secretary Steve Mnuchin, the G7, IMF, Financially Stability Board, and World Bank had a discussion on crypto and COVID.
In the US, stablecoins became the new target, as on December 2th, members of Congress proposed a new bill labeled as for "consumer protection," with the purpose of increasing the oversight and regulation of stablecoins and their issuers. This was right on time, as Facebook recently announced they will be releasing a stablecoin Diem (formerly Libra), which German Finance Minister Olaf Scholz called "a wolf in sheep's clothing."
One of the provisions of the bill is that stablecoins will have to be issued by banks that are "insured depository institutions." Issuers would also have to notify the FDIC of their intentions to launch a stablecoin six months in advance, immediately redeem all outstanding stablecoins into US dollars, which would be punishable by fines or revocation from the Federal Reserve System, to name few. This is scary news to those who are fans of Tether, the mysterious USD-pegged stablecoin that has maintained top 5 market cap position and currently has $47 billion in volume. Its co-founder Brock Pierce is also not optimistic about the stablecoins future.
Meanwhile, global card issuer VISA announced a partnership with Circle-backed stablecoin USDC, to help VISA credit card issuers integrate USDC's software into their systems, where they can then send and receive payments in USDC. Ultimately, this will mean any business that accepts VISA will soon be able to accept USDC, digital or brick and mortar, and also establish international payments.
According to Forbes, after Circle graduates from its Fast Track program, VISA will issue a credit card that will be the "first corporate card that will allow businesses to be able to spend a balance of USDC.
Circle is a digital payments and treasury infrastructure platform, focused on connecting the world with seamless digital payments, helping internet businesses accept payments on a unified network.
Their USDC stablecoin, made in partnership with crypto exchange Coinbase, has recently reached over $3 billion in circulation.
What do you think about stablecoins? Do you use them? Comment your takes below.
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