Imagine your transfer arriving in seconds, not days, without deducting $66 from the amount.
Stablecoins have emerged to become the new cornerstone of the digital financial system, linking their value to fixed assets like the U.S. dollar. The market size is estimated today at around $200 billion, with 98% of it pegged to the dollar, making it an expanded digital version of the greenback outside the United States. These currencies provide instant settlement at a cost of 0.5%-1% compared to 6.62% for traditional methods, ensuring savings are protected from market volatility and enhancing immediate financial inclusion.
Congress has moved with key legislative frameworks to turn testing into fixed standards:
Firstly, the GENIUS Act requires large issuers to register with the federal government and maintain a reserve covering 100% of the issuance value, leaving the responsibility for small issuances to states to support startups—though the annual licensing fee ($50,000) may burden them. Secondly, the STABLE Act requires banks to be the official sponsors of stablecoins and to deposit reserves in the federal treasury, with periodic stress tests and strict anti-money laundering and counter-terrorism financing rules, but it overlooks the allocation of standards and tools for cybersecurity and external auditing of platforms.
The opportunity lies in reducing remittance costs and immediately enhancing financial trust, while the biggest challenge is formulating a framework that balances innovation and protection of digital liquidity. With the delay in cyber coverage in U.S. legislation, leadership may shift to lighter-weight jurisdictions or projects like the Chinese e-CNY. In the race to write the rules, those who draft them determine the direction of global digital payments.
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