It feels like just last year stable coins got a lot of heat. However that seemed to tapper off for a good while as Bitcoin ETFs and other things in crypto took center stage. Of which I'd have to say all where every positive for the crypto assets and are why we are now holding at historic highs.

Now while I don't feel like we are going to break out to $114,000 (my target for the next bull run) any time soon we could actully see a deeper retraction based on simply not that much going on. I believe we have another month or two before we start to really see some positive action again.

That being said stable coins are now taking center stage with the government once again. If you didn't realize it the USA and allies with the USA are seriously struggling against countries like China, Russia etc as they hold a vast amount of the natural resources that these countries need and simply don't have importing them from the countries that are not so in favor with them anymore.

Stablecoin Benefits

There's actully a lot of benefits to stable coins. Being a solid payment option for items online it's not a credit system and instead it's real money that exists to some extent unlike a credit card a IOU at a later time.

However like always there are bad actors but the government always overplays just how much bad actors are using these assets in order to try and crack down and be in full control.

You see the benefits of a digital system like this over the paper Fiat system etc is the massive ability to in fact track every dollar and connect it into systems and AI to detect bad actors quickly. That's great for governments but it's not so great for USA citizens and other people using cryptocurrency in good faith and trying to restore some of their freedoms and the pursuit to wealth.

Government Focus

With everything going on in the world this has brought stable coins back into the spotlight and for companies like Coinbase and more importantly Blackrock to have clear oversight of those funds and track them.

The government is pushed for stable coins to only be able to be issued by select companies and for there to be massive pinpoint tracking on all of it.

The new legislation is aimed to quote "cement" the U.S dollar. It's called the Lummis-Gillibrand payment stable coin act.

It's said to...

• Protects consumers by requiring stable coin issuers to maintain 1-1 reserves.
  (My thoughts: Which that seems like a perfectly reasonable ask and what many people expected in the first place)
• Prevents illicit or unauthorized use of stablecoins by issuers and users.
• Prohibits algorithmic stablecoins and crack down on bad actors
• Creates federal and state regulatory regimes for stablecoin issuers that preserve the dual banking system.

The biggest takeaway for me right there and for people of Hive is the Prohibits algorithmic stablecoins which is EXACTLY what HBD is.

The Path Forward

With frameworks like this going into place it's clear the stable coins will in fact have a solid footing and strict regulation around them at some point in the near future. Being that a stable coin represents the USD the government does in fact have control over it which is something people seem to be missing the point of.

That being said the government is also attempting to not be over powering as it's seen the massive power of how stable coins are used to buy government issued bonds which is something that is greatly propping up the united states at the moment and would most likely "cement" the USD as the new top dog in the digital age which is where we are headed. It makes perfect sense when you step back and start to look it over.

Posted Using InLeo Alpha