What do you think about fiat stable coins?

[dzungmobile]

Did you read about the recent KGST listed on Binance? It is backed stablecoin pegged 1:1 to the Kyrgyz Som (KGS). I think it is backed by gold. The stable coin is a Kyrgyzstan stable coin definitely.

Stablecoins can be stable or not stable if they depeg.
Stablecoins can be frozen in your non custodial wallets.

They are two biggest risks people must think about stablecoins.

The advice and warning: don't store your money in stablecoins, it's risky. If you consider stablecoins and fiatcurrencies represent the same value of a same national currency, store your money in cash is better.
PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets.
Stablecoins and Blacklists.

[_act_]

I think there are both pros and cons when it comes to these altcoins, specifically focusing on government issued ones that are also known as CBDC.

Maybe people can have different definitions of what is seen as stable coins, but generally CBDCs are not regarded as stable coins, they are seen to make use of blockchain technology but the government are not calling them cryptocurrencies. In fact the government are saying they are not cryptocurrencies. I do not know the reason it is like this, but I have seen the governments that have CBDC saying it is not crypto.

[bitgolden]

Stablecoins can be stable or not stable if they depeg.
Stablecoins can be frozen in your non custodial wallets.

They are two biggest risks people must think about stablecoins.

There would be another high level risk which is about government seizing the entire stablecoin company itself like how USA seized few m*xing services. When government start feeling about stablecoin as a threat to their fiats, they may decide anything like that. So, stabecoins are always in peril of getting banned at any time soon.

@OP, from the beginning itself, tether corporate explained that they are issuing stable coin for every country's fiat, for example for Australian dollars, it would be AUDT. For some reason, such tether versions are not famous to us.

[asriloni]

Stablecoins can be stable or not stable if they depeg.
Stablecoins can be frozen in your non custodial wallets.

They are two biggest risks people must think about stablecoins.

There would be another high level risk which is about government seizing the entire stablecoin company itself like how USA seized few m*xing services. When government start feeling about stablecoin as a threat to their fiats, they may decide anything like that. So, stabecoins are always in peril of getting banned at any time soon.

Any stable company operated in US have to follow genius act and pass multi jurisdiction licensing, which mean they are legal. You make non sense comparison when comparing a legal business entity that fully regulated to the mix service that operated ilegally, and help criminal to laundering their money. Where are your logic?

[execijutiere]

Although they may seem to have solid backing, it doesn't make sense to me. As we know, we can hold stablecoins such as USDT and USDC. Binance had also entered the stablecoin business at one point by launching BUSD, but they have since discontinued it. We know that USDT has occasionally been associated with bad news and has affected the market. Of course, they have sources of income, but the fact that there are so many stablecoins and the funds to back them up are outside the system frankly doesn't convince me.I expect them to be more transparent on this matter. This would attract more investors to cryptocurrency.

[Victorybit1]

I think there are both pros and cons when it comes to these altcoins, specifically focusing on government issued ones that are also known as CBDC.

Maybe people can have different definitions of what is seen as stable coins, but generally CBDCs are not regarded as stable coins, they are seen to make use of blockchain technology but the government are not calling them cryptocurrencies. In fact the government are saying they are not cryptocurrencies. I do not know the reason it is like this, but I have seen the governments that have CBDC saying it is not crypto.

I believe my country also wanted to implement the use and circulation of CBDCs in their banking system and the whole idea of a start looked kike something that would be effective but the lack of proper awareness and spreading of the insight on the project especially it benefits and advantage actually made the whole thing looked like the failed project that it later turned out to be. For now even me am confused on what I should think or called the CBDCs.

[TastyChillySauce00]

Stablecoins can be stable or not stable if they depeg.
Stablecoins can be frozen in your non custodial wallets.

They are two biggest risks people must think about stablecoins.

There would be another high level risk which is about government seizing the entire stablecoin company itself like how USA seized few m*xing services. When government start feeling about stablecoin as a threat to their fiats, they may decide anything like that. So, stabecoins are always in peril of getting banned at any time soon.

@OP, from the beginning itself, tether corporate explained that they are issuing stable coin for every country's fiat, for example for Australian dollars, it would be AUDT. For some reason, such tether versions are not famous to us.

Literally government is the one that provides regulation framework to work with for stablecoin and even pushing for the adoption.

The government can't just seize the stablecoin's reserve without any reason and most of stablecoin issuer are company that are listed in NYSE such as CRCL (Circle Internet Group Inc) and Paxos.
They are textbook legal company and the reason people called them out stablecoin to be a centralized extension of traditional finance is because they are obeying every single regulatory and compliance.

One of the main reason why stablecoin is gonna get supported instead of getting banned is because they absorb US short term bond by massive amount.

[laijsica]

I think there are both pros and cons when it comes to these altcoins, specifically focusing on government issued ones that are also known as CBDC.

Maybe people can have different definitions of what is seen as stable coins, but generally CBDCs are not regarded as stable coins, they are seen to make use of blockchain technology but the government are not calling them cryptocurrencies. In fact the government are saying they are not cryptocurrencies. I do not know the reason it is like this, but I have seen the governments that have CBDC saying it is not crypto.

CBDC is the digital form of fiat. It is directly linked to the centralized authority/government financial system. This system is very popular with goods and services and even in the case of fund transactions, this system is a breakthrough step for the cashless economy. I think the experience from the decentralized digital currency system has been given a digital form of centralized fiat and this financial system will expand further in the future. Although it is basically called a stable coin it is eroded due to the effect of inflation. Because fiat is constantly being devalued. Over time the value of some of the top cryptocurrencies has the potential to increase so the investor has the potential to get high profits but fiat/CBDC depreciates over time.