For once the problem isn't Bitcoin or Ethereum, according to the F̷i̷n̷a̷n̷c̷i̷a̷l̷ S̷t̷a̷b̷i̷l̷i̷t̷y̷ B̷o̷a̷r̷d̷, 🆂🆃🅰🅱🅻🅴🅲🅾🅸🅽🆂 should be regularized.
The five largest stablecoins for 65% for all trading volume, despite representing less than 4% of the market capitalization for public ledger tokens.
The stablecoin market has grown so much that for example on Binance the top five crypto trades use USDT as an exchange pair (57% of the exchange's volume). In the past, however, other cryptocurrencies were used (for example Bitcoin-Monero, Bitcoin-Dash, etc)
The idea is to regularize the rules, supervisory systems and to decrease the liquidity of the stablecoins.
The reference is to Libra: the digital currency of Mark Zuckerberg.
Libra could be a competitor to FIAT coins and similar to a private currency.
Perhaps it's the 2.5 billion active users on Facebook every month that have frightened the FSB.
Other stable targets are: 𝓣𝓮𝓽𝓱𝓮𝓻 and 𝓤𝓢𝓓 𝓒𝓸𝓲𝓷.
How to adjust stablecoins?
-Ensure that competent authorities have the necessary powers and resources to regulate and supervise global stablecoins, including their multifunctional activities, in order to effectively apply laws and regulations
-Authorities should apply regulatory requirements to GSC (global stablecoin) agreements on a functional basis and proportionate to their risks
-Guarantee that there is regulation
-They should cooperate and coordinate with each other, both nationally and internationally, in order to regulate stablecoins across borders and sectors
-Implementation of global governance, with a division of responsibility, for global stablecoins
-Ensure effective risk management frameworks for these new currencies, in particular as regards the management of reserves, operational resilience, IT security guarantees and AML / CFT measures, as well as suitable and adequate requirements
-Authorities should also ensure that global stablecoins have solid systems to safeguard, collect, store and manage data
-They should also have adequate recovery plans
- Ensure that global stablecoins provide users and stakeholders with complete and transparent information
-Regularize any rights and redemption process
-Authorities should ensure that stablecoins meet all applicable regulatory, supervisory and surveillance requirements of a particular jurisdiction before starting any operation
The application of the rules desired by the Financial Stability Board should fall on Tether's USDT, Gemini's GUSD, Coinbase's USDC, etc.
It will be interesting to understand how these rules will be applied to algorithmic stablecoins such as 🅓🅐🅘 and to all those that will follow on Ethereum or other chains.
The MakerDao project is not yet totally decentralized but in any case, even in the future of total disintermediation, it will be monitored and updated by a decentralized autonomous organization.
