Here comes Facebook!
Here is our pick of the 3 most important Stablecoin news stories during the week.
The week started with Facebook finally starting to roll out a “small pilot” of its Novi digital wallet in the US and Guatemala, more than two years after it was first announced. The pilot program will let users send and receive money “instantly, securely, and with no fees” using the Paxos stablecoin, in partnership with Coinbase (which will be serving as the custody partner that holds the actual funds for the pilot).
Facebook’s Novi digital wallet finally launches… without Diem cryptocurrency – The Verge
Then drearily, the inevitable fight back from some Politicians who say Facebook cannot be trusted to keep its word and want to stop or hobble it as much as possible. In the meantime, Trump is going after Facebook in the market with a competitive product called Truth. Seriously, this stuff writes itself.
US Lawmakers Push Back on Facebook’s Novi Wallet Launch (coindesk.com)
But maybe, just maybe, they are fighting yesterday’s war. Stablecoin driven DeFi is growing at an amazing rate. This week we heard of a transaction that describes a whole new way of consumer driven finance. A Crypto whale put some of his/her stash up as collateral for a USDT loan at 0.5% one time fee and then used the cash to buy a house. No mortgage, no lawyers, no Bank, no interest rate risk and all done in minutes!
Defi has now passed USD 100b in locked value.
So in summary, as the powerful fight it out in Washington over how and who is going to run this new stablecoin and Crypto world, those crazy folks in DeFi are building.
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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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