Maintain dollar hegemony – Like many other governments, the UNITED STATES have returned to open war against Bitcoin (BTC) and decentralized cryptocurrencies. A new law Project which will soon be presented to the US Congress could sound the end from some stablecoins, not controllable enough. This, with the stated aim of making a clean sweep before the advent of a potential digital dollar centralized.
Decentralized stablecoins, like DAI, must die
The United States House of Representatives will present this Wednesday, April 19, 2023 a legislation relating to the “definition of requirements” for issuers of stablecoinsas well as on top “the search for a digital dollar”.
Might as well say it right away, the 73-page document is a full attack against stablecoin projects decentralized. As summarized by Ryan Berckmans on Twitter (@ryanberckmans), this law would make illegal stablecoins “unaccredited” to USA.
DAI, LUSD, RAI are among the stablecoins targeted by this text. In the event of the creation or issue of stablecoins outside the framework (not approved), the penalties incurred are a fine can go up to $1 millionand a penalty of prison can go up to 5 ans.
USDC and USDT will survive if their issuing companies obey
Stablecoin issuers that exist as private companies, such as Tether for’USDT et Circle for’USDC will have the Federal Reserve US (Fed) as regulator. They will, however, have to comply with very strict requirements.
Among these is the obligation to have reserves of guarantees in 1 for 1 with very limited and controlled assets:
- American dollars;
- Treasury bills with a term of 90 days or less;
- Repurchase agreements with a maturity of 7 days or less that are backed by treasury bills with a maturity of 90 days or less;
- Central bank reserve deposits.
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Net place is made for king-dollar digital version
The last part of this bill is devoted to the study of a digital dollar. If the text were to be adopted, it would then leave 6 months to the Treasury Department and the Federal Reserve for make a report on the impact and feasibility of a digitized greenback on blockchain.
“No later than 180 days after the date of proclamation of this Act, the Secretary of the Treasury, in coordination with the relevant agencies, will provide a confidential report to the House Financial Services Committee and the Banking Commission (… ) of the Senate on the development of international standards relating to central bank digital currencies (MNBC). »
In particular, US lawmakers want the case of the digital yuan (e-CNY) from Chine be studied closely in this report. It must be said that the country of Xi Jinping is very advanced in terms of MNBC, since tests are carried out in real situations for over a year now. States definitely don’t like competition. Whether it is that of Bitcoin of course, or even that of stablecoins that are not sufficiently obedient and controllable.
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