As the world becomes increasingly digital, the financial institutions we are used to having to adjust and turn to innovations. While some of them are exploring the possibility of developing and launching their own digital currency, others are looking to take advantage of the existing technologies such as stablecoins.
The International Monetary Fund (IMF), an organization working to secure financial stability globally, has repeatedly expressed its antagonism to the issuance and circulation of the Marshall Islands’ state-run digital money currency.
A bureaucrat at the International Monetary Fund (IMF), an organization working to strengthen worldwide financial cooperation, proposed a way for the central bank (CB) and private companies to jointly operate the CBDC.
Central banks from 46 countries worldwide are exploring digital currency, however, only a few of them are actually going to launch their own coins. And most of them are not going to base their stablecoins on a blockchain.
As stablecoins gain momentum all over the world, financial regulators and banks insist that a flawless regulatory structure be prepared before approving global stablecoins, alluding to risks and gaps in the existing guidelines. Stablecoins need to prepare for preemptive regulations.
A study has been published showing that issuing stablecoins such as Tether and Circle’s USD Coin (USDC), don’t cause the prices of other digital currencies like Ether, Ripple, etc. to surge. So far, there have been few sentiments in the cryptoasset industry that the connection between stablecoin issuance and digital currency price is large.
Various organizations are working with governments and other NGOs to assist the world’s poorest farmers by helping them sustainably boost production and have easy access to new markets through stablecoins and cryptocurrencies, hence growing their sales and incomes.
Stablecoins climb up in market cap value, while cryptocurrencies still fail to recover from the post-pandemic knockout. This wasn’t left unnoticed by the world governments, and notably, G20, who already sought ways how to cope with a growing demand for stablecoins.
Amidst the chaos on the markets, stablecoins seems to have been least affected by the market crash. Analysts predict that over $7 Billion in investment funds will flow into the cryptocurrency market in the coming months.