Before I discuss any further I want you to remind what was discussed in December 2019 where Christine Lagarde touched the subject "stable coins". Take a look at the videoTime stamp of the video 57:13https://youtu.be/ucuSp2QiK_IPretty much they don't consider bitcoin as a danger but in fact they consider stable coins as a danger. She mentioned that they gonna get ahead of the curve on the stable coins and then immediately started discussing digital payments in the EU across European Banks and it is becoming a very severe situation with central banks pushing digital fiat. And that tells us that as it is the current situation with negative interest rates, central banks wants us to have an account in the bank so they can charge us negative interest rates, instantly, and force us to go and spend money, pretty much they can control our behavior with a click of a button.So since this press conference there was not that much of a news regarding stable coins but it came that day where they are going to pretty much ban them. They are forcing a new G20 regulation.Stablecoins continue to grow, we also saw some new stable coins launching in the past year. Different stable coins with different mechanics, some of them are backed by real fiat (dollars) and some of them are just an algorithm that keeps the value of the coin at $1 stable, a real example of this is Dai.https://ift.tt/2XAOujZ came across this article this morning. Financial Stability Board that is hosted by the Bank of International Settlements and it is also in high connection to the G20 are basically saying all countries have to ban stable coins because is no way that these stable coins can comply with even portion of the rules that they are imposing.Quoting"The Financial Stability Board (FSB) outlined ten recommendations to central banks for regulating stablecoins, including outright prohibition." - I think this will be implemented real quick, I would say by the end of 2020 this might happen because it is in direct competition with digital fiat and they are not letting that to play by itself in the "free market".Quoting"The FSB is an international entity that provides suggestions on the global financial system." - In many cases the regulation is put in place not to protect the consumers that is the biggest lie in all the regulations. They pretty much are saying, regulation is here for you, the consumer, in reality the regulation is there to protect the monopolies because you have to understand when you are a new company you are a new organisation and you becoming big. Question is why do you become big? Well it's simple because you've been working hard because you invest in research and development because you served the marked very well and all this is expensive but it's well worth.But the thing is when you become big enough when you become global, when you become powerful you have the choice to either continue investing in creating better services, competing on the markets allowing newcomers to compete with you and just being a normal participant in the free market as everyone else OR you have the choice to invest some money in lobbies and try to lobby for a regulation, try to build up the defense around your business model so nobody can compete because nobody has the resources nor the man power nor the knowledge to be the part of your walled garden because you have built up all this regulation and as you see it is very clear that this is whats going on right now. The fact that they are protecting the consumer, this and that, but in reality they are also admitting that this is in direct competition with their own system with their own power. It is very important to note that whenever you hear these regulation you have to understand that they are selling it to you and acting like they are defending you, so you don't revolt about monopolies because it's all about you ...I even believe in their "meetings" they are discussing a lot how they will keep the "people working paying taxes don't ask any question", "we can do our monopoly defending through regulation because they think we are defending the people and by the way we also gonna do central banking" which is the fact that you get people with high credit scores getting cheap loans getting cheap money and we see this wealth transfer from poor to rich, the Cantillon Effect(google it to understand better what is this). This all is marketed and positioned in media as something good for all of us but in reality it is not. It's all about keeping their monopolies and their system.Quoting"The recommendations are to be presented before an audience of G20 countries, and reference major stablecoins, including USDT, USDC, TUSD, PAX, and DAI (DEFI). Given the market’s heavy reliance on stablecoin, a ban could mean disaster for Bitcoin and the broader cryptocurrency market." - Let's see what kind of arguments they have, why do they want to ban stable coins and at least regulate them to death. It is not necessarily that they are going to ban but it's that the regulations are impossible so it is a ban pretty much.Quoting"The FSB’s primary focus is on the potential risks that stable coins could pose to global financial stability" - This bothers me so much, apparently the financial system is so brutal it is so vulnerable that we need to have all these guys protecting it all costs and when you have some stable coin project it needs to be removed because it threatens the stability. It really brings the question how vulnerable is this whole financial system why is it so unstable? Whenever new invention you have, whenever new startup, you always have to ensure that it doesn't threaten the stability ...They are basically saying that because retail investors are getting in all these stable coins it means if one of these stable coins exit scams or something else happen it means that that particular retail investor that bought a stable coin will feel poor it will feel like they don't have money and they will not spend in the economy so thus the financial sta
Submitted April 15, 2020 at 06:30PM
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