Here is our pick of the 3 most important Stablecoin news stories during the week.
This week we calm down after the festive season party and face up to the inevitable hangover. As in a sober analysis of how we would build a Digital Asset infrastructure that is as safe and secure as the existing Fiat one but with the added new functionality afforded to us by having our Assets represented by computer code rather than just ledger entries.
This Blog by Tim Swanson lays out the challenges.
https://www.ofnumbers.com/2021/01/04/parasitic-stablecoins/
The appendix is also worth a read as it looks at many of the component parts required.
https://www.ofnumbers.com/2021/01/04/appendix-to-parasitic-stablecoins/
The UK government is also pondering this question when this week it asked for submissions on how they should establish a Regulatory Framework for Crypto Assets and Stablecoins. As you can see in this table they are considering expanding their regulatory boundaries to include stablecoins.
UK regulatory approach to cryptoassets and stablecoins: consultation and call for evidence
In the meantime, the Chinese Central Bank (PBoC) continues to broaden it’s trail. The Agricultural Bank of China is said to have enabled a number of ATMs around the city of Shenzhen to offer trial services for the digital yuan. AgBank, one of the “big four” Chinese banks, is allowing customers to deposit and withdraw digital yuan to or from their current or savings accounts, according to a report from Shenzhen Daily on Sunday.
https://www.coindesk.com/chinese-bank-trials-digital-yuan-services-at-atms-report
In summary, it is interesting to note that the UK public consultation indicates an eagerness to foster innovation, even, if it is at the expense of the existing Banking Industry. This seems to be in common with the process being adopted generally in the West, which has lead to slow and sometimes difficult small steps forward, whilst in China they are moving a lot quicker and using existing banking infrastructure and sidelining big local Tech.
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Alan Scott is an expert in the FX market and has been working in the domain of stablecoins for many years.
We have a self imposed constraint of 3 news stories per week because we serve busy senior Fintech leaders who just want succinct and important information.
For context on stablecoins please read this introductory interview with Alan “How stablecoins will change our world” and read articles tagged stablecoin in our archives.
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