Stablecoins represent a significant advancement in the payment field and require a clear legal framework for sustainable development.
Establishing regulations for stablecoins not only helps stabilize the market but also facilitates this cryptocurrency to become a popular payment method in the future.
MAIN CONTENT
Stablecoins are considered an important innovation in payments.
A transparent legal framework is necessary for the safe and sustainable development of stablecoins.
Stablecoins have the potential to become an essential part of the global payment ecosystem.
What are stablecoins and why are they considered a breakthrough in payments?
From the perspective of expert Jinshi, stablecoins are cryptocurrencies designed to maintain stable value, helping to mitigate the volatility of traditional cryptocurrencies. According to Musallem, a senior official of the Fed, stablecoins are an interesting innovation, opening up the possibility of promoting more convenient and efficient electronic payments.
Stablecoins connect liquidity and price stability, facilitating quick transactions in both traditional markets and cryptocurrency. According to a report from an international financial organization in 2023, the growth of stablecoin transactions exceeded 400 billion USD, demonstrating its increasing importance.
Why is it necessary to build a legal framework for stablecoins?
Musallem from the Fed emphasized at the seminar on July 10, 2024, that establishing regulatory management for stablecoins is essential to protect users and avoid systemic financial risks. The legal framework will help clarify operations while creating trust for the safe development of stablecoins in the financial ecosystem.
Stablecoins are not only a new payment tool, but also a step forward in enhancing stability and reliability for modern electronic transactions.
Musallem, Vice President of the Fed, 07/10/2024
A clear legal framework also helps central banks and regulatory agencies to easily control risks such as security, money laundering, and terrorism financing. Additionally, it facilitates the development of cooperation between the cryptocurrency market and traditional finance.
What role will stablecoins play in future payments?
Expert Jinshi believes that stablecoins may become an indispensable part of global payment systems due to their ability to maintain stable value and high flexibility. Businesses and users will gradually prefer using stablecoins for quick transactions with low fees compared to traditional methods.
In the near future, stablecoins may become one of the main pillars of the digital economy, supporting cross-border payments and enhancing financial inclusion.
Jinshi, Cryptocurrency Expert, 2024
The widespread adoption of stablecoins also drives the development of DeFi, improves liquidity, and reduces transaction costs. According to statistics from 2024, platforms using stablecoins recorded a user growth rate of over 50% compared to the previous year, indicating increasing adoption potential.
Frequently Asked Questions
How are stablecoins different from traditional cryptocurrencies?
Stablecoins that maintain stable value are often linked to real assets or fiat currencies, minimizing price volatility compared to cryptocurrencies like Bitcoin or Ethereum.
How will the establishment of a legal framework impact the stablecoin market?
The legal framework will enhance transparency, protect users, and minimize financial risks, creating a long-term development foundation for stablecoins.
Can stablecoins replace cash in payments?
Stablecoins have the potential to become a popular payment method due to their speed, low transaction fees, and ease of cross-border money transfers.
Where does the capital backing the value of stablecoins come from?
The majority of stablecoins are backed by collateral assets such as fiat currency or highly liquid investments to maintain stable value.
What technology ensures the safety of stablecoins?
Stablecoins operate on a Blockchain platform with Smart Contracts that ensure transparency, safety, and immutability in transactions.
Source: https://tintucbitcoin.com/stablecoin-tro-thanh-phan-quan-trong-thanh-toan/
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