Stablecoins have become a core aspect of the cryptocurrency industry over the years. It now appears that these currencies may be banned, at least according to a document published by the Financial Stability Board.
There are many benefits to the stablecoins currently issued on the market.
The Future Looks Bleak for Stablecoins
In the cryptocurrency world, they are the go-to trading market for Bitcoin and top altcoins.
Follow CryptoMode on Twitter, Youtube and TikTok for news updates! That situation may soon come to a change, at least where the Financial Stability Board is concerned.
The agency recently issued a document addressing some concerns stablecoins bring to the market.
These currencies, according to the FSB, enhance the efficiency of provision of financial services.
That benefit is tangible, but every medallion has two different sides to it.
The downside is how these stablecoins bring some serious threats to the financial stability of countries all over the world.
An independent payment infrastructure is the last thing the FSB would like to see.
After all, that would potentially remove the need for [central] banks altogether.
As such, the FSB now advocates for active stablecoin regulation.
That is a very interesting and rather surprising turn of events.
A bank run has been looming overhead for some time now, and stablecoins may facilitate such a situation moving forward.
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