U.S. Senator Roots For Stablecoins’ Transparency and Cash Backing

A vocal Pro-Crypto U.S Senator has called for further developments in the auditing of Stablecoins. Sen. Cynthia Lummis holds that the audit should go beyond the "proof" provided by the leading insurers. Senator said, "cash should fully back Stablecoins". But, again, there's a need to audit that condition regularly to ensure compliance by their providers. Lummis contributed to a Senate discussion on the potential for the U.S to develop. Its central bank digital currency (CBDC). She sounded alarmed over the…

Treasury Keeps a Hawk’s Eye on Stablecoins as U.S Crypto Regulation Calls Continue

U.S. top regulators earmark Tether and its counterparts on allegations that they are too risky. The treasury's hands are also full since it is drafting recommendations for crypto regulation. According to anonymous sources, the treasury aims to secure crypto transactions. Stablecoins Pose a 'Big Risks' for The U.S. to Ignore As per Bloomberg, ensuring reliable and safe crypto transactions is the ultimate goal for the treasury. The regulators are also worried that the ever-rising sales on crypto-assets may disrupt the world's financial order. Cryptos…

A Deep Dive into the World of Crypto-Collateralized Stablecoins

Stablecoins are a new breed of cryptocurrencies backed by stable underlying assets such as fiat currency real-world assets or on-chain tokens. The approach allows stablecoins to combine the advantages of bitcoin, such as low fees, instant transactions, and complete anonymity, with price stability. The global market cap of stablecoins recently surpassed a $100 billion market cap, representing approximately 5% of the overall crypto market capitalization of nearly $2 trillion. Furthermore, as per the latest report from Analytics Insights, the market-leading…

Stablecoins on the Limelight as New Crypto Regulations Near Introduction

Crypto regulation was back in the headlines this week, with regulators within the U.S. and worldwide looking at stablecoins and debating potential policies to govern this type of cryptocurrency. The regulations which will come to light soon could influence the accountability issuers must provide and the rights of their customers. Potential regulations could reduce the threat that stablecoins pose a systemic risk to the financial system – or they could make the situation worse. Fed not a Fan of Cryptos…

Difference Between Wrapped Assets, NFTs, and Stablecoins

If you live outside the cryptocurrency and blockchain realm, it can be hard to understand the latest terminologies hitting the headlines and news feeds. However, what’s likely to be more surprising and eye-catching at the same time is the dollar amount mentioned alongside the terminologies. Like, how can a virtual creation of an artwork file sell for close to $70 million?! Well, that’s the amount the highest bidder was willing to pay for an NFT on Christie’s auction a few…

Is It Possible To Back A Stablecoin Against More Than One Commodity?

Cryptocurrencies are an attractive asset class but remain a puzzle to many. First, it was the complex technology behind the virtual coins, then the decentralized nature of the currency that scared even governments away from the digital assets. Finally, however, people with wits took on this innovation and saw it as an excellent opportunity for wealth accumulation.  However, one more thing came to light, crypto volatility. Cryptocurrencies are notoriously volatile, but this was not the end of the road for…

NFTs and Stablecoins, What is the Difference?

It is always hard to keep up with an industry that constantly launches new successful products by the year. The blockchain world is one such industry that seems just to be scratching the surface of its full potential. Even then, it has managed to top over 4000 different cryptos as of the end of January 2021. While not particularly new in crypto terms, NFTs and Stablecoins are still very new concepts to most people who aren't avid followers of the…

US Banks Allowed To Use Stablecoins To Make Payment

All banking institutions in the United States can now use public blockchains and the stablecoins they host to make payments. They can also mine nodes of these blockchains and issue their own stablecoins. US Banks Allowed To Use Stablecoins This development comes from a statement by the Office of the Comptroller of the Currency (OCC). The OCC is the institution responsible for regulating and overseeing domestic banks operating in the United States. The letter states that all banking institutions in…

UK Drafting Proposal to Regulate Stablecoins and Private Cryptocurrency

The United Kingdom has announced plans to research stablecoins and a central bank digital currency (CBDC). The Treasury Department of the United Kingdom is drafting proposals to regulate private stablecoins and investigate digital currencies as an alternative to cash. This news is coming off the back of the UK's recent departure from the European Union (EU). The government is now looking for productive and innovative ways to improve its financial sector. In an official announcement, the UK Treasury Chancellor Rishi…