While many people define stablecoins as an oasis of stability in the volatile cryptocurrency market, there is a concerning aspect: the ability of certain entities to block or freeze these assets digitally at any time. What was designed as a tool for fast and borderless transactions ultimately remains under the control of organizations that can decide who can and cannot use their money.
In theory, any user could be affected if their account is blacklisted, without warning and without the possibility of recovering their funds.
Stablecoins are no longer as 'neutral' as many believe.
Can stablecoins disappear?
For about 5 years now, governments have attempted to legalize and regulate cryptocurrencies due to their increasing use by users as a means of payment and investment and adoption by businesses for the convenience of their customers.
Many authorities have pointed out that cryptocurrencies can be used by criminal organizations for money laundering, payments related to drug trafficking, human trafficking, and tax evasion. This is not entirely false.
Today, the stablecoins USDT, TUSD, FDUSD, USDP, AEUR, DAI, UST, PAXG, and USTC are about to be blocked in Europe. Binance, the largest cryptocurrency exchange platform in the world, announced that it would stop offering support for these digital assets, as they are not compliant with the MiCA Regulation (Regulation on Crypto-Asset Markets) in the European Economic Area (EEA).
This decision was announced by Binance in a statement, in which it emphasizes that the measure will begin to take effect on March 31, 2025, and its goal is to adapt to regulatory requirements. This involves the elimination of stablecoins that are not compliant with MiCA in the EEA.
In the United States, it is almost impossible to define a future not only for cryptocurrencies but for the economy in general. With the call of President Trump's 'trade war' and Peirce's statements, it seems that cryptocurrencies could be an investment vehicle and a hedge against the 40% probability of a recession predicted by several entities such as JPMorgan Chase for this year.
In Europe, the outlook is calmer. Although these 9 stablecoins are heading towards an imminent crash, the future of the cryptocurrency market is marked by factors such as regulation, adoption by recognized institutions, and asset tokenization, subjects where progress has been made in accordance with the clear standards of MiCA that seem to seek to find a balance between promoting blockchain technology innovation and accessing DeFi, while ensuring investor protection.
