Here is our pick of the 3 most important Stablecoin news stories during the week:

This week we go all in on the bullish case for stablecoins and why they are the key catalyst to changing our financial system.

Firstly, they are already doing very well and have improved dramatically during this COVID-19 crisis with the total supply now passing USD $ 10 billion.  See this excellent chart below and in the the following medium post by Lou Kerner 5 Reasons Why Stablecoins Will Be $1+ Trillion In Market Cap In 5 Years

Today, these stablecoins are just basically digitised USD.  The Fed is printing plenty so expect more of it to find its way into the Crypto world.

• In this Cointelegraph article, The Bank of France successfully tests its Digital Euro.  Digital Euro at the Bank of France  The Bank of France is one of some 80 Central Banks who have active CBDC projects underway.

Returning to our central theme that stablecoins will not only be popular but the catalyst for change we have two opinions from completely different ends of the spectrum.  Grayscale, the world’s largest digital asset manager, claims that increasing interest in CBDCs highlights the value proposition of Bitcoin, in this article at Decrypt Bitcoin boosted by surging interest in CBDCs, says Grayscale which includes this excellent table on the differences between Bitcoin and CBDC.

At the other end of the spectrum China Bank­ing News, said that one of the chief ad­van­tages of Chi­na’s new CBDC (which will be launched later this year), is its abil­ity to enable nu­anced and fine-tuned con­trol of cur­rency flows, permitting greater in­ter­na­tion­al­i­sa­tion of the Ren­minbi with­out the need to fully open the coun­try’s cap­i­tal ac­count. CB­D­C’s enable China to achieve a middle road of par­tial con­vert­ibil­ity and lib­er­al­i­sa­tion of their cur­rency.  China’s New Digital Currency Will Foster Internationalisation of the Renminbi

In summary, stablecoins including CBDC’s will enable innovation in both the State and Private Sector spheres, growing the entire Crypto ecosystem.  

Hopefully, you have found something interesting, new and of value in this weekly summary.  In the meantime, stay safe and sane as we fight our way out of lockdown! 

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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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Source: https://dailyfintech.com/stablecoin-news-for-week-ending-tuesday-26-may-2020/