The GENIUS Stablecoin Act opens the door for the U.S. government to develop central bank digital currency (CBDC) in the form of centrally managed stablecoin.
This law blurs the lines between state-controlled stablecoin and CBDC, thereby changing how digital financial transactions are managed and supervised.
MAIN CONTENT
The GENIUS Act is seen as paving the way for CBDC through state-regulated stablecoin.
Expert analysis shows that stablecoin and CBDC are nearly identical in function and oversight.
Control over stablecoin means the government holds power over digital financial transactions.
What is the GENIUS Stablecoin Act and how does it impact cryptocurrency?
The GENIUS Stablecoin Act is a proposed law aimed at regulating the operation of stablecoins in the United States, while also laying the groundwork for the development of central bank digital currency (CBDC). According to Congresswoman Marjorie Taylor Greene, this law is a 'backdoor' for the government to create CBDC in the form of privately issued stablecoin but under strict control.
The law opens up the possibility of transitioning to a cashless society, giving the government the right to control all trading activities through state-managed Cryptocurrency. This is a highly debated step within the cryptocurrency community regarding financial freedom and privacy.
How does the GENIUS Stablecoin Act blur the lines between stablecoin and CBDC?
Cryptocurrency expert Justin Bechler states that the GENIUS Act forces stablecoin to comply with regulations like CBDC, making them essentially indistinguishable from CBDC but merely labeled as 'disguised CBDCs'. This means stablecoin will become a tool for digital financial surveillance equivalent to CBDC but without the negative connotation of the name.
Author Saifedean Ammous – known for the book The Bitcoin Standard – also believes that the current USD has operated as a central bank cryptocurrency with high oversight and an increasing trend towards digitization. Thus, stablecoin and CBDC are converging in terms of function and state control.
The GENIUS Act regulates Stablecoin and provides a backdoor for central bank digital currencies. The Federal Reserve has planned CBDC for many years, enabling a cashless society where authoritarian control over your transactions is possible.
Marjorie Taylor Greene, U.S. Congresswoman, 07/20/2024
How does government control over stablecoin affect digital financial transactions?
Jean Rausis, co-founder of the decentralized trading platform Smardex, emphasizes that government control over stablecoin means they have the power to influence all digital financial transactions. This not only affects privacy but also restricts the ability to use cryptocurrency freely, while increasing centralization and oversight.
The state's ability to apply laws controlling stablecoin also allows for the implementation of more effective management and monitoring tools for cash flows, but in return will diminish decentralization and security in blockchain transactions.
Governments realize that if they control Stablecoin, they control financial transactions.
Jean Rausis, Co-founder of Smardex, 2024
What are the main differences and similarities between state-managed stablecoin and CBDC?
Criteria State-managed Stablecoin Central Bank Digital Currency (CBDC) Issuing entity Private organization, but under state oversight and regulation Central bank or state agency directly issuing Legal characteristics Must comply with regulations similar to CBDC after the GENIUS Act Issued under specific state law Monitoring features Increasing in government control and oversight Enhanced by design, can control all transactions Purpose of use Fast payment, stable value support for digital financial transactions Promote a cashless society, control official cash flows Impact on financial freedom More limitations, affecting personal privacy Completely centralized, tightly controlled
Frequently Asked Questions
What is the GENIUS Stablecoin Act?
The GENIUS Act is a law in the United States aimed at regulating stablecoin, facilitating the development of CBDC and state oversight.
How does this law affect cryptocurrency?
It requires stablecoin to comply with similar regulations as CBDC, increasing oversight and potentially limiting financial freedom.
Is there a significant difference between state-managed stablecoin and CBDC?
They are essentially similar in function and oversight, differing only in the issuing entity and name.
What impact does government control over stablecoin have on users?
Users will face tighter scrutiny, affecting privacy and the ability to transact freely.
Why do experts believe that stablecoin and CBDC are soon to merge?
Because the new regulations blur the lines, making stablecoin operate like CBDC under state control.
Source: https://tintucbitcoin.com/nghi-si-my-canh-bao-genius-act/
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