According to recent reports, most of the governments of sovereign nations are not thinking about the issues that stablecoins may cause domestic monetary and fiscal policies. In fact, many governments are so unprepared that their only plan of action is to simply ban these stablecoins altogether and implement regulations that others come up in the meantime.
However, this may not be a necessary step considering that stablecoins are already within the cryptocurrency market and they are growing in popularity every single day.
In the past, it was simply unimaginable to consider stablecoin as something worthwhile to invest in, but soon enough these coins were the ones that had the most trading volume compared to the whole market.
Small safe havens for investors and mediums of exchange for merchants are what stablecoins started to be, but now are aspiring to become official currencies for sovereign nations.
Exchange platforms support this development
Many crypto exchange platforms have commented on this development and have called stablecoins the perfect tool for worldwide blockchain adoption, especially in this age of crypto acceptance.
According to the rapidly growing platform Bitcoin Profit, it’s predicted that stablecoin will soon start filtering the unworthy exchanges from the best ones.
Why? Because stablecoins are not developed by individuals, they’re developed by companies and teams, which then decide where to place these stablecoins or which platforms to support. By taking on the responsibility of a global adoption pioneer it will be up to them to filter through available exchanges.
Exchanges that will feature stablecoins will almost immediately have a “legit” label put on them while platforms that will not receive this support will have to struggle much harder to prove their trustworthiness to the community.
Many say this may concentrate too much power in stablecoins, but don’t forget that stablecoins are competing between themselves as well. So in the end, it all balances itself out.
It’s turning into a race
Despite the fact that the majority of governments are not prepared for this technology, it’s obvious that Central Bank-supported stablecoins are becoming a race against the clock.
The first truly huge project was announced by China in 2019 and it seems that they are nearing the completion of their CBDC (Central Bank Digital Currency).
Every government understands that if China is the first major country to enter this market without competition, it will be almost impossible to regain or have any hope of financial dominance in a couple of decades.
What China is doing now is laying the foundation, and even larger projects are sure to follow once the CBDC is launched.
Should the US or EU fail to respond, a huge chunk of online finances will be hijacked by the e-Yuan.