Stablecoins Will Massively Disrupt Traditional Banking

https://twitter.com/1415155663131402240/status/1583642031007535104
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Another regulation narrative. The good thing is that they acknowledge the threat of private money replacing the traditional banking system. The article even implies associating it with "shadow banking”. Solution? Banks should issue stablecoins so they can regulate them.

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Stablecoins are going to be a part of the future and I think it will probably be the solution for those that believe that there is a lack of USD in the financial system. HBD is just another type of stable coin and it's back by Hive instead of USD. So I still think it will work.

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Probably they survive it somehow. :-D

But seriously. To disrupt the traditional banking system, the cryptocurrencies (in general) need a much wider acceptance and usage. The first thing most people do is to sell their cryptocurrencies. How is that going to disrupt the banking system. People are doing the opposite. The banks see that there is a huge depand for USD. Even the Hive Wallet compare the value of our wallets to the USD. Most people care about the USD.

If people would stop (or massively reduce) using using traditional money (fiat currencies), and if they would use cryptocurrencies (only or mostly), then that would disrupt the traditional banking system.

But probably that is not going to happen in the near future.

Can we buy food with cryptocurrencies?
Can we pay the bills with cryptocurrencies?
Can we pay rent with cryptocurrencies?
Can we buy/pay for (anything) with cryptocurrencies?

It would take a lot to disrupt the traditional banking system. Probably it will not happen in the near future.

I have lived in countries for the last 17 years where remittances are near the top of the countries economy.
This is why I have a belief that if HIVE gets adapted by small local businesses it use will grow rapidly, especially in Latin America.
HIVE has the great social media edge.
I see lots of users content in supposed developing countries in Africa, Latin America, and Eastern Europe.
The international bankers will lose their strangle hold on these societies as use continues to grow.

!BBH
!PIZZA
!CTP
!PGM

Summary:
In this video, the speaker discusses an article stating that stablecoins have the potential to disrupt traditional banks. He draws parallels between the traditional banking system and the historical era of decentralized currencies issued by banks in the 1800s. The speaker emphasizes the importance of network effects in determining the value of stablecoins, highlighting the significance of use cases and payment systems. He contrasts private bank money creation by institutions like investment banks with stablecoins that operate without centralized entities. The potential for stablecoins like HBD to revolutionize international payments and circumvent traditional banking systems is also touched upon.

Detailed Article:
The speaker begins by referring to an article discussing the disruptive potential of stablecoins on traditional banks. Drawing a historical analogy to the 1800s where banks issued various currencies, he explains how stablecoins could lead to similar decentralized monetary exchanges. The importance of network effects in determining the value of stablecoins like USDC is highlighted, noting that backing alone is not sufficient – utility and use cases are crucial.

Furthermore, the speaker delves into the role of investment banks like Goldman Sachs and JP Morgan in creating assets within the banking system. He contrasts traditional fractional reserve banking with the emergence of private stablecoins that operate without reserves or centralized control. He specifically mentions HBD as an example of private bank money without the need for traditional banking entities, emphasizing its disruptive potential.

The speaker touches upon the significance of regulation in protecting incumbent players in the financial system, leading entities like Circle to seek banking licenses. He mentions algorithmic stablecoins like HBD as a promising innovation that could reshape the crypto-to-crypto payment landscape, offering fast and fee-less transactions globally.

Moreover, the speaker envisions a future where stablecoins like HBD enable instant cross-border transactions without the need for traditional banking intermediaries. He emphasizes the transformative impact this could have on international payment systems, potentially rendering traditional banks obsolete. The advantages of stablecoins, such as HBD, in providing stability and accessibility to a dollar-pegged asset are underscored as a game-changer in the monetary landscape.

In conclusion, the speaker highlights the revolutionary potential of stablecoins like HBD in disrupting traditional banking systems, offering fast, low-cost, and borderless transactions. This shift towards decentralized private money creation could redefine the financial industry and empower individuals with greater control over their finances.

Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.