Stablecoins – The Shib Daily

Taiwan Plans First Stablecoin by 2026 as Crypto Laws Move Forward

Michaela — Thu, 04 Dec 2025 09:47:59 +0000

Taiwan has announced plans to launch a domestic stablecoin pegged to the local or U.S. dollar as early as the second half of 2026, pending passage of new crypto legislation.

According to local reports, Financial Supervisory Commission (FSC) Chairman Peng Jin-long stated Wednesday at a legislative hearing that the stablecoin’s legal framework, the Virtual Assets Service Act, should be scheduled for consideration in the current session and, if it advances smoothly, passed in the next session. He added that once the FSC issues the accompanying regulations, a six-month implementation period would be required before the law takes effect.

This week, the Cabinet is set to review the act after three previous meetings that Peng said had achieved a “high level of consensus.” He added that the draft bill is modeled on the European Union’s Markets in Crypto-Assets (MiCA) regulations and does not explicitly mandate that stablecoins be issued by financial institutions. However, for risk-management purposes, the FSC and the central bank have agreed that issuance will initially be limited to regulated financial institutions.

Taiwan is among several jurisdictions that have recently expressed interest in introducing a domestically pegged stablecoin. Earlier this week, ten major European banks applied to the Dutch Central Bank for approval to launch a euro-backed stablecoin, aiming for a second-half 2026 rollout.

The euro-backed stablecoin is expected to enable 24/7 cross-border transactions, programmable payments, and smoother digital asset settlements, including tokenized assets and cryptocurrencies. It aims to deliver near-instant, low-cost payments while streamlining supply chain and financial processes.

The initiative comes as U.S. regulators prepare a legal framework for payment stablecoins under the GENIUS Act, signed by President Donald Trump in July, highlighting a global push for clearer digital currency regulations.

Additionally, Taiwan’s push into stablecoins comes amid reports that the government is preparing an assessment of its Bitcoin holdings, as officials consider establishing a national Bitcoin reserve using seized coins, modeled after the U.S. Strategic Bitcoin Reserve.

The development of a Taiwan-issued stablecoin spotlights the island’s effort to position itself as a regional hub for digital finance, signaling a strategic push to modernize payments infrastructure and strengthen its presence in the emerging crypto economy.

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10 EU Banks Aim to Launch Euro-Pegged Stablecoin by Late 2026

Michaela — Wed, 03 Dec 2025 15:22:52 +0000

A coalition of 10 European banks has established the Amsterdam-based entity Qivalis, aiming to launch a euro-pegged stablecoin in 2026 that complies with the EU’s Markets in Crypto-Assets (MiCA) framework, pending regulatory approval.

According to an official statement, 10 leading European banks — Banca Sella, CaixaBank, Danske Bank, DekaBank, ING, KBC, Raiffeisen Bank International, SEB, UniCredit, and BNP Paribas — are seeking regulatory approval from the Dutch Central Bank to launch a euro-backed stablecoin, targeting the second half of 2026.

“The launch of a euro-denominated stablecoin, backed by a consortium of European Banks, represents a watershed moment for European digital commerce and financial innovation. A native Euro stablecoin isn’t just about convenience – it’s about monetary autonomy in the digital age,” Jan-Oliver Sell, CEO of Qivalis, stated.

Oliver noted that introducing a euro-pegged stablecoin would create fresh opportunities for European businesses and consumers to engage with on-chain payments and digital asset markets in their native currency. The move aims to allow fintech firms, SMEs, and individuals across Europe and beyond to transact smoothly across borders while preserving the stability and reliability linked to the euro.

Additionally, the euro-pegged stablecoin is expected to facilitate round-the-clock access to efficient cross-border transactions, programmable payments, and enhanced digital asset settlements, including tokenized assets and cryptocurrencies. It aims to offer near-instant, low-cost payments while improving processes across supply chains and financial transactions.

The move to launch a euro-pegged stablecoin comes at a notable moment, as U.S. regulators are preparing to implement a legal framework for payment stablecoins under the GENIUS Act, signed into law by President Donald Trump in July.

The timing emphasizes the growing global focus on regulatory clarity for digital currencies. Meanwhile, stablecoin issuer Tether recently exited the euro stablecoin market, halting redemptions for its EURt token on November 25.

The decision follows Tether’s announcement last year to discontinue support for EURt, citing potential risks under the European Union’s MiCA regulations. CEO Paolo Ardoino noted that these regulatory changes posed challenges for the continued operation of euro-backed stablecoins.

This landscape spotlights both the opportunities and regulatory hurdles facing banks and companies aiming to issue digital euros, as governments and financial authorities worldwide move to shape the future of stablecoins.

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South Africa Reserve Bank Flags Crypto Risks — What SHIB Holders Should Know

Michaela — Wed, 26 Nov 2025 12:19:28 +0000

The South Africa Reserve Bank has flagged digital assets and stablecoins as emerging financial risks in its 2025 financial stability report, pointing to rising trading volumes, growing user numbers on major exchanges, and gaps in the country’s crypto regulations.

South Africa’s central bank noted cryptocurrencies and stablecoins as emerging risks to the country’s financial system in its latest Financial Stability Review, released Tuesday. The report noted that the combined user base across the nation’s three largest crypto exchanges reached 7.8 million by July, with roughly $1.5 billion held in custody at the close of 2024.

The report noted that South Africa’s Exchange Control Regulations, which govern the movement of funds in and out of the country, could be bypassed due to the borderless nature of digital assets. Their entirely digital structure, the bank said, makes cryptocurrencies vulnerable to exploitation that could circumvent existing financial controls.

The South African Reserve Bank also noted a “structural shift” in the country’s crypto market, citing a marked increase in stablecoin trading since 2022. While Bitcoin and other cryptocurrencies previously dominated trading activity, the report found that USD-pegged stablecoins have emerged as the preferred trading pair on South African exchanges, largely due to their lower price volatility compared with unbacked digital assets.

SHIB Holders Alert: South Africa Reserve Bank Flags Crypto Oversight

For SHIB holders in South Africa, the central bank’s warning signals potential changes ahead in how cryptocurrencies are bought, sold, and held. Increased scrutiny or new regulations could affect local exchanges that list SHIB, potentially limiting trading options or adding stricter know-your-customer (KYC) and anti-money-laundering (AML) requirements.

Custody solutions might also come under greater oversight, meaning wallets and third-party services could face additional compliance obligations, possibly impacting ease of use and access.

While SHIB itself is decentralized and operates independently of any central authority, tighter financial regulations could influence how easily South African residents can move SHIB on- and off-ramp through exchanges.

Holders may need to stay informed about evolving rules and consider how to secure their tokens safely, whether through self-custody or compliant service providers. Overall, the central bank’s stance emphasizes the growing attention regulators are giving to digital assets like SHIB.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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Japan’s Yen Stablecoin JPYC Could Shake Up Government Bond Market

Michaela — Thu, 13 Nov 2025 06:46:52 +0000

Japan’s first yen-backed stablecoin issuer, JPYC, has said rising demand for digital assets could position stablecoin reserves as a major force in the country’s government bond market.

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Key points:

JPYC, Japan’s first yen-backed stablecoin issuer, could become a major buyer of Japanese government bonds, potentially influencing the Bank of Japan’s monetary policy.
The company plans to expand its stablecoin circulation to 10 trillion yen over three years, allocating 80% of proceeds to JGBs and 20% to bank deposits.
JPYC aims to strengthen the yen’s presence in the global stablecoin market, highlighting the growing intersection of digital assets with traditional finance.

JPYC CEO Noritaka Okabe told Reuters on Tuesday that stablecoin issuers could emerge as significant buyers of Japanese government bonds in the coming years, potentially affecting the central bank’s influence on monetary policy.

On October 27, JPYC launched its yen-pegged stablecoin, issuing roughly 143 million yen to date. The company aims to expand circulation to 10 trillion yen (around $64.5 billion) over the next three years. Okabe stated that JPYC seeks to strengthen the yen’s presence in the expanding digital asset market, where U.S. dollar–pegged stablecoins currently account for 99% of global supply.

“Various assets are now traded on blockchains real-time across the world. But the stablecoin market is dominated by the dollar, which is a disadvantage to Japanese firms that need to pay extra hedging and transaction costs,” Okabe stated. “Japan must ensure the yen has a presence in the global stablecoin market,” he added.

Furthermore, Okabe noted that as the Bank of Japan scales back its bond purchases, stablecoin issuers could become major holders of Japanese government bonds (JGB) in the coming years. JPYC plans to allocate 80% of its proceeds to JGBs and the remaining 20% to bank deposits.

Okabe warned that the growing role of stablecoin issuers could limit the Bank of Japan’s monetary policy flexibility, as their JGB purchases would increasingly depend on stablecoin supply and demand dynamics.

“While authorities could try to control the duration of bonds stablecoin issuers buy, it would be hard for them to control the volume they hold,” Okabe stated. “This will happen around the world. Japan is no exception,” he added.

JPYC’s move spotlights a broader trend of digital assets intersecting with traditional finance, signaling a potential shift in how central banks and private issuers influence national debt markets.

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Bank of England Vows to Match US Speed on Stablecoin Rules

Michaela — Thu, 06 Nov 2025 09:04:42 +0000

Bank of England Deputy Governor Sarah Breeden has emphasized the need for the United Kingdom and the United States to coordinate their regulatory approaches to stablecoins, noting that alignment between the two financial systems will be key to ensuring stability and trust in the digital asset market.

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Key points:

Bank of England Deputy Governor Sarah Breeden stressed that regulatory alignment between the U.S. and UK is crucial to maintaining stability and trust in the growing stablecoin market.
The Bank of England will publish its stablecoin consultation on November 10, signaling a softer stance on earlier proposals and a more flexible approach to digital asset oversight.
Recent U.S.–UK agreements highlight a broader commitment to joint innovation in digital assets, AI, and technology policy, reinforcing both nations’ leadership in shaping global tech standards.

Speaking at the SALT conference in London on Wednesday, Breeden said the Bank of England will release its consultation on stablecoin regulation on November 10, according to Reuters. The consultation is expected to take a softer stance than earlier proposals, marking a potential adjustment in the central bank’s regulatory approach.

“I’ve been talking to the Federal Reserve… The regulators over there and our finance ministries are working together,” Breeden stated.

In September, the United States and the United Kingdom unveiled a joint task force to enhance cooperation on digital assets and capital markets. The agreement also includes initiatives to advance research and development in emerging technologies such as artificial intelligence, strengthen collaboration on nuclear security, and establish a U.S.–UK benchmarking task force to promote innovation and industry confidence.

A memorandum of understanding signed by U.S. President Donald Trump and UK Prime Minister Keir Starmer underscores a shared commitment to advancing leadership in emerging technologies. The agreement aims to strengthen bilateral collaboration, shape global technology standards, and accelerate the commercialization of innovations across key sectors.

Furthermore, in October the Bank of England announced plans to implement temporary caps on stablecoin holdings to safeguard credit availability. Breeden outlined that the limits would range between £10,000 and £20,000 ($13,440–$26,880) for individuals, and up to £10 million ($13.44 million) for businesses using systemic stablecoins in payments. Breeden added that these restrictions would be lifted once the central bank assesses that the transition no longer poses risks to broader economic stability.

Breeden’s remarks spotlight a pivotal moment in the global race to regulate digital assets. As both the U.S. and UK move toward more aligned frameworks, the emphasis is shifting from reactive oversight to proactive coordination, aimed at ensuring innovation doesn’t outpace stability. With upcoming policy consultations and international cooperation deepening, the future of stablecoin regulation appears set to blend caution with ambition.

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Stablecoins Explained: The Secret to Crypto That Never Fluctuates

Michaela — Wed, 05 Nov 2025 11:04:16 +0000

Crypto is known for its chaos. One day your coins are mooning, the next day they’ve crash-landed. But somewhere in the middle of all that price madness sits a quiet corner of calm, the world of stablecoins.

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Key points:

Stablecoins bring calm to crypto’s chaos by maintaining a steady value through ties to stable assets such as the US dollar, gold, or other cryptocurrencies.
They connect traditional finance and digital assets, enabling trading, remittances, and DeFi with faster, cheaper, and more reliable transactions across borders.
Stability isn’t absolute, as concerns around transparency, depegging, and unclear regulations can still cause even “stable” coins to lose balance in a volatile market.

Stablecoins are a special kind of cryptocurrency built to stay steady, usually tied to something more predictable like the US dollar or gold. While Bitcoin and Ethereum bounce around with every market mood swing, stablecoins aim to keep their value consistent, acting as crypto’s version of a chill, reliable friend in a market full of drama.

What Are Stablecoins and How They Work

So what makes stablecoins so, well, stable? The secret lies in something called a peg. That means each coin is tied, or “pegged,” to a specific asset that doesn’t swing wildly in price, like the US dollar, the euro, or even gold. This peg acts like an anchor, keeping the coin’s value steady while the rest of the crypto sea rises and falls.

Fiat-Backed Stablecoins

These are the most common kind. Coins like USDT (Tether) and USDC (USD Coin) are backed by real-world money or cash equivalents held in bank accounts. For every USDC you own, there should be one actual US dollar sitting safely somewhere. Think of it as a digital version of your regular cash, except faster, borderless, and blockchain-powered.

Crypto-Backed Stablecoins

Instead of traditional money, these rely on other cryptocurrencies as collateral. A great example is DAI, which uses assets like Ethereum (ETH) locked up in smart contracts. It’s like a high-tech vault system that ensures stability through decentralized rules rather than a bank’s promise. The setup is more complex, but it gives the crypto community a way to create stability without touching fiat currency.

Algorithmic Stablecoins

These are the rebels of the bunch, no dollars, no crypto backing, just code. Algorithmic stablecoins use automated systems to balance supply and demand to keep their value steady. In theory, it’s brilliant. In practice, it can be risky. The infamous TerraUSD (UST) collapse in 2022 showed how a broken algorithm can send “stability” spiraling, wiping out billions and shaking confidence across the market.

In short, stablecoins all aim for calm in crypto’s chaos, but the way they stay steady depends on what’s holding them up.

Why Stablecoins Matter

So why do stablecoins matter? Because they keep the crypto world balanced. When prices swing wildly, traders use stablecoins as a safe zone, still in the market, but away from the chaos.

They also make sending money across borders faster and cheaper. No banks, no long waits — just quick, low-cost transfers that actually make sense for people sending money home or doing business globally.

In DeFi (decentralized finance), stablecoins are the fuel that keeps everything running. They power lending, borrowing, and yield-earning, helping users stay steady while exploring new financial tools.

In short, stablecoins bridge two worlds, traditional money and crypto, making it easier to move between them without losing stability or momentum.

The Hidden Risks

Here’s the thing about stablecoins, they may sound perfectly safe, but they’re not risk-free. “Stable” doesn’t always mean unshakable.

Here are a few things to keep in mind:

Transparency matters – Some issuers haven’t always proven that every stablecoin is fully backed by real assets. Without regular audits or clear disclosures, that promise of “one coin equals one dollar” can start to wobble.
De-pegging is real – Sometimes, a stablecoin can lose its link to the asset it’s supposed to follow. Remember TerraUSD in 2022? It crashed hard, wiping out billions and showing how fragile algorithms can be when market confidence fades.
Regulation is still evolving – Governments around the world are debating how to handle stablecoins, some pushing for strict rules, others seeing their potential to modernize finance. Until clear global standards exist, uncertainty will remain part of the game.

Stablecoins might bring calm to crypto’s chaos, but even calm waters can hide strong undercurrents.

The Future of Stability in Crypto

The future of stability in crypto is looking brighter, and a lot more digital. Central Bank Digital Currencies (CBDCs) are starting to enter the picture, offering government-backed versions of what stablecoins already do: fast, borderless money that doesn’t swing like Bitcoin on a bad day.

At the same time, private stablecoins are evolving. They’re becoming key players in global finance, connecting traditional banks, payment apps, and crypto ecosystems. Some might even power everyday transactions, buying coffee, paying rent, or sending money abroad, with the same ease as swiping a card.

The big takeaway? In a world where crypto can soar and crash in a single tweet, stability might be the most underrated innovation of all. Stablecoins aren’t just digital dollars, they’re the calm center of a very wild storm.

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Kyrgyzstan Launches Stablecoin, Confirms Plans for National CBDC

Michaela — Tue, 28 Oct 2025 06:40:23 +0000

Kyrgyzstan has introduced a new stablecoin tied one-to-one to the national currency, the som, while also confirming plans to develop a central bank digital currency (CBDC) and examine the creation of a digital asset reserve.

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Key points:

Kyrgyzstan has launched the KGST stablecoin pegged 1:1 to the som and confirmed plans to develop a central bank digital currency (CBDC) and explore a national crypto reserve.
Binance founder Changpeng “CZ” Zhao announced the KGST stablecoin will run on the BNB Chain, include BNB in its crypto reserve, and the CBDC is ready for government-related payments.
The National Bank of Kyrgyzstan is piloting the digital som in three stages, while analysts highlight potential privacy and oversight concerns associated with CBDCs compared to decentralized cryptocurrencies.

Binance founder Changpeng “CZ” Zhao announced that the new KGST stablecoin will operate on the BNB Chain, with BNB included in its crypto reserve if launched. Zhao also stated that Kyrgyzstan’s CBDC is ready for deployment and is intended to facilitate government-related payments.

Updates from Kyrgyzstan
– The National Stablecoin launched, on @BNBChain
– The CBDC is ready for rollout. Yes, both. CBDC will be used for gov related payments, etc
– The National Cryptocurrency Reserve set up, #BNB included
– LE training
– Binance Academy with 10 top… https://t.co/KPrL0pnsWG pic.twitter.com/SInh5aCPMZ
— CZ BNB (@cz_binance) October 25, 2025

Kyrgyzstan’s cryptocurrency regulatory committee has been tasked with ensuring the KGST stablecoin is made available on international trading platforms. The committee is also required to submit detailed proposals within the next two months for the establishment of a national cryptocurrency reserve, aiming to strengthen the country’s digital asset infrastructure and support broader adoption of blockchain-based financial instruments.

National Bank of Kyrgyzstan Chairman Melis Turgunbaev revealed at a meeting of the National Council for the Development of Virtual Assets and Blockchain Technologies that the central bank has developed a demonstration version of the digital som platform, operating on a closed blockchain. The pilot project aims to test the technical capabilities and security features of the digital currency infrastructure before any broader rollout.

“The next major step will be the pilot launch of the digital som project, carried out in three stages based on technical and functional requirements,” A representative of the National Bank stated. “The first stage will deploy the full infrastructure within the National Bank, connect commercial banks, and enable transfers between their mobile applications. Upon successful completion and audit, the Central Treasury will be connected to the platform for social and government payments. The third phase will cover offline payments, including transactions without Internet access or with limited connectivity. After successfully piloting all three phases, the platform will be rolled out nationally and scaled,” the representative added.

While Kyrgyzstan’s partnership with Binance could accelerate cryptocurrency adoption and technical expertise in the country, some analysts note that the development of a CBDC raises questions about privacy and oversight.

Unlike decentralized cryptocurrencies, CBDCs can allow governments to track transactions more closely, potentially creating tools for monitoring financial activity. Globally, the implementation of such digital currencies has sparked debate over balancing innovation with civil liberties, with experts emphasizing the importance of regulatory frameworks that protect citizens’ privacy while enabling secure and efficient financial systems.

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Western Union Bets on Stablecoins — What It Could Mean for SHIB Holders

Michaela — Mon, 27 Oct 2025 06:26:57 +0000

Global financial services firm Western Union has announced plans to pilot a stablecoin-powered settlement system to modernize remittance services for its more than 150 million customers worldwide.

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Key points:

Western Union is piloting a stablecoin-based settlement system to modernize remittances, aiming for faster, cheaper, and more transparent cross-border transfers.
The initiative provides customers, especially in high-inflation regions, greater control over funds and helps preserve purchasing power with US dollar-denominated assets.
Mainstream adoption of stablecoins could boost confidence in crypto, indirectly benefiting SHIB holders through increased visibility, trading activity, and liquidity.

During Western Union’s third-quarter earnings call on October 23, CEO Devin McGranahan said the pilot aims to use on-chain settlement rails to decrease reliance on traditional correspondent banking, speed up transactions, and enhance capital efficiency. He added that the initiative could enable faster, more transparent, and lower-cost money transfers while maintaining compliance and customer trust.

Western Union stated that the stablecoin initiative would provide customers with greater flexibility and control over managing and transferring funds, especially in countries experiencing high inflation. Holding a US dollar-denominated asset can help protect purchasing power where local currencies are rapidly losing value. The company emphasized that these efforts are part of a broader strategy to modernize the global money movement.

“Over the last several years, we have frequently spoken about our desire to make Western Union a more digital company and to expand our product set to meet the needs of our customers as they evolve,” McGranahan stated.

Western Union Stablecoin Pilot Boosts Crypto Adoption

Western Union’s stablecoin pilot signals a major step toward mainstream blockchain adoption, and SHIB holders could feel the ripple effects. By integrating stablecoins into cross-border transfers, traditional financial networks begin to recognize crypto as a practical tool rather than just a speculative asset.

This normalization can boost confidence among both retail and institutional investors, potentially increasing demand and usage of established tokens like SHIB. Faster, more transparent transfers also spotlight the advantages of decentralized finance, showing how crypto can solve real-world problems like inflation, remittance costs, and slow settlement times.

As more major players like Western Union explore blockchain solutions, SHIB benefits from increased exposure, adoption, and credibility. While SHIB itself may not be directly used in these transfers, its position as a widely recognized digital asset means it could see enhanced trading activity and liquidity, benefiting holders who are already invested in the token’s ecosystem.

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Beijing Halts Chinese Tech Giants’ Stablecoin Initiatives in Hong Kong

Michaela — Mon, 20 Oct 2025 16:42:39 +0000

Major Chinese tech firms Ant Group and JD.com have suspended their Hong Kong stablecoin initiatives after Beijing regulators expressed concerns over private companies issuing and controlling digital currencies.

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Key points:

Ant Group and JD.com have paused their Hong Kong stablecoin projects following directives from Beijing regulators over private issuance concerns.
Hong Kong is moving forward with its stablecoin framework, with the HKMA planning limited licenses and requiring strict compliance, security, and operational standards.
The regulatory pause highlights Hong Kong’s cautious approach to balancing innovation with financial stability, influencing both major firms and smaller fintech players in the region.

According to the Financial Times, both companies were directed by the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) to halt their stablecoin initiatives. A source familiar with the matter told the outlet that regulators’ primary concern is determining who holds the ultimate authority to issue currency, whether it is the central bank or private firms.

Earlier this year, Ant Group and JD.com showed interest in participating in Hong Kong’s pilot stablecoin program or launching tokenized financial products, including digital bonds. Hong Kong began accepting applications for stablecoin issuers in recent weeks, with mainland officials initially viewing the initiative as a way to promote renminbi-pegged stablecoins and strengthen the yuan’s presence in international markets.

In September, the Hong Kong Monetary Authority (HKMA) announced plans to issue a limited number of stablecoin licenses during the program’s initial phase, despite 77 institutions signaling their intent to apply.

In May, Hong Kong’s Legislative Council approved the Stablecoin Bill in its third reading, paving the way for major institutions to apply for HKMA licenses to issue stablecoins before year-end.

The HKMA aims to balance oversight with innovation, requiring early participants to meet strict compliance, security, and operational standards. Analysts say the phased rollout may give early adopters a competitive advantage while allowing regulators to refine rules as the market evolves.

The pause by Ant Group and JD.com underscores the delicate balancing act Hong Kong faces as it positions itself as a hub for digital finance. Observers suggest that regulatory caution may signal a broader trend in Asia, where governments are carefully managing the growth of private digital currencies to protect financial stability while fostering innovation.

Meanwhile, smaller fintech startups and international players remain watchful, adjusting strategies as the licensing framework takes shape. The coming months will be critical in shaping Hong Kong’s stablecoin ecosystem, determining whether it can attract credible participants while maintaining public trust and regulatory integrity.

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Bank of England Sets ‘Temporary’ Stablecoin Caps — With No End in Sight

Michaela — Fri, 17 Oct 2025 10:10:12 +0000

Bank of England Deputy Governor Sarah Breeden has confirmed that the central bank will introduce “temporary” stablecoin caps to protect credit availability, though no timeline has been provided for when these limits will be lifted.

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Key points:

The Bank of England will impose “temporary” stablecoin caps to protect credit availability, with limits of £10K–£20K for individuals and £10M for businesses, but no timeline has been set for lifting them.
The central bank plans to offer accounts to systemic stablecoin issuers, allowing them to hold reserves and earn returns, effectively acting as a “banker to systemic issuers.”
Crypto industry groups and UKCBC warn that individual stablecoin caps are costly, difficult to enforce, and could affect the UK’s competitiveness in the digital asset market.

Speaking at DC Fintech Week 2025, Breeden announced that the central bank plans to introduce stablecoin caps, setting limits of £10,000 to £20,000 (around $13,440 to $26,880) for individuals and up to £10 million (about $13.44 million) for businesses using systemic stablecoins in payments.

Breeden noted that the Bank of England intends to lift the stablecoin caps once it determines that the transition no longer poses risks to real-economy financing. However, the upcoming consultation paper, expected later this year, does not specify a timeline or criteria for when those conditions will be considered met.

Breeden added that the Bank of England plans to offer accounts to systemic stablecoin issuers, enabling them to hold reserves directly with the central bank and generate returns by investing part of those funds in short-term UK government securities. This approach, she noted, effectively positions the Bank as a “banker to systemic issuers.”

In September, UK-based crypto advocacy organizations called on the Bank of England to rethink its proposal to cap individual stablecoin holdings, arguing that the policy would be costly to implement and difficult to enforce. The groups cautioned that such restrictions could undermine the nation’s competitiveness in the global digital asset market.

Simon Jennings, executive director of the UK Cryptoasset Business Council (UKCBC), criticized the proposed individual stablecoin caps as unworkable, emphasizing that issuers do not have real-time access to information about token holders, making enforcement both difficult and expensive.

Meanwhile, central bankers have cautioned that the absence of such limits could lead to significant outflows from traditional bank deposits, posing risks to credit availability and broader financial stability. Regulators have also warned that unchecked stablecoin growth could destabilize the existing financial system.

As the UK implements these stablecoin limits, issuers and investors must adapt to the central bank’s new risk controls.

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North Dakota Unveils Plan for State-Backed ‘Roughrider’ Stablecoin

Michaela — Thu, 09 Oct 2025 12:29:17 +0000

Global payments firm Fiserv, Inc., in collaboration with the Bank of North Dakota, has unveiled the Roughrider Coin, the state’s first stablecoin and the first of its kind to be issued by a U.S. state.

Key point:

North Dakota launches the Roughrider Coin, the first U.S. state-backed stablecoin, through a partnership between Fiserv and the Bank of North Dakota.
Fully backed by U.S. dollars, the Roughrider Coin aims to modernize financial transactions, boost global payments, and drive adoption across banks and credit unions.
State-backed coins like Roughrider may reshape crypto liquidity, influencing how decentralized ecosystems like Shiba Inu’s interact with regulated digital assets.

In a statement, the payments firm said the Roughrider Coin will be fully backed by U.S. dollars and is designed to “increase bank-to-bank transactions, encourage global money movement, and drive merchant adoption.” The stablecoin is expected to become available to banks and credit unions across North Dakota next year.

“As one of the first states to issue our own stablecoin backed by real money, North Dakota is taking a cutting-edge approach to creating a secure and efficient financial ecosystem for our citizens,” Governor Kelly Armstrong stated. “The new financial frontier is here, and The Bank of North Dakota and Fiserv are helping North Dakota financial institutions embrace new ways of moving money with the Roughrider coin,” he added.

Fiserv COO Takis Georgakopoulos said the financial industry is entering a new era defined by instant, interoperable, and borderless payment systems. “With Roughrider Coin, we’re bringing together the reliability of traditional finance and the innovation of blockchain to deliver faster and smarter digital payments,” Georgakopoulos stated. “North Dakota’s vision and leadership in launching this initiative show how forward-thinking policy can drive real progress in digital finance. We are pleased to be selected as their partner,” he added.

The Roughrider Coin takes its name from former U.S. President Theodore Roosevelt, who commanded the Rough Riders during the Spanish-American War in the late 1800s. After his presidency, Roosevelt made North Dakota his home, where he maintained a strong personal and historical connection to the state.

Roughrider Coin and the New Liquidity Shift

The arrival of state-backed stablecoins marks a new chapter in crypto’s evolving liquidity landscape. For the Shiba Inu ecosystem, this development stretches far beyond Shibarium, it raises deeper questions about how regulated digital dollars might coexist with decentralized networks.

As governments move toward issuing their own blockchain-based currencies, liquidity could begin to shift between permissioned and permissionless systems. State coins, with their built-in compliance and fiat backing, may attract institutional players seeking stability, while Shiba’s decentralized economy continues to thrive on transparency, community governance, and open access.

For SHIB holders and DeFi builders, the potential ripple effects are twofold: greater liquidity across chains could make it easier to bridge assets into and out of Shibarium, but it could also test the ecosystem’s competitive edge against government-regulated networks.

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Bank of England Eases Up on Stablecoins in Bid to Stay Competitive

Michaela — Wed, 08 Oct 2025 12:11:11 +0000

The Bank of England has reportedly been considering exemptions to its proposed limits on stablecoin holdings, a move that would allow systemic stablecoins to back reserves with short-term government bonds.

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The Bank of England is considering exemptions to stablecoin holding limits, allowing systemic stablecoins to back reserves with short-term government bonds and be used in its Digital Securities Sandbox.
Proposed ownership caps range from £10,000–£20,000 per individual, with a potential lower threshold of £5,000, though enforcement challenges and industry concerns persist.
Regulators warn that unrestricted stablecoin use could disrupt traditional banking, while policymakers aim to balance innovation, financial stability, and the UK’s competitiveness in the global crypto market.

According to a report by Bloomberg, the Bank of England plans to grant waivers to select firms, including crypto exchanges, that require large stablecoin holdings for liquidity and settlement. The UK central bank also aims to allow stablecoins to be used as settlement assets within its Digital Securities Sandbox, providing a controlled environment to test blockchain-based issuance and trading.

Industry experts caution that the UK could lag behind the U.S., where the GENIUS Act has provided clear guidelines for dollar-backed stablecoins. Some warn that Britain’s stricter regulatory approach may push innovation and liquidity overseas.

A key focus is the ownership limits proposed by the Bank of England, suggesting individual caps on digital pounds between £10,000 and £20,000 (about $13,000–$27,000) while also seeking input on a potential lower threshold of £5,000.

Simon Jennings, executive director of the UK Cryptoasset Business Council (UKCBC), said individual stablecoin limits would be difficult to enforce, noting that issuers often lack real-time insight into token holders, making compliance both complex and expensive.

Central bankers, however, caution that unrestricted stablecoin use could prompt significant withdrawals from traditional bank deposits, posing risks to credit availability and financial stability, with regulators emphasizing the potential for these digital assets to disrupt the conventional financial system.

As the UK navigates the rapidly evolving digital asset landscape, the outcome of these regulatory decisions could shape the country’s position in the global crypto market for years to come.

While stablecoins remain a small fraction of the UK financial system today, their growth potential is significant. Policymakers face the challenge of fostering technological advancement while safeguarding consumers and institutions, setting the stage for a cautious but forward-looking approach to integrating digital currencies into mainstream finance.

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GENIUS Act Could End Banks’ Low-Interest Game, Says Multicoin Exec

Michaela — Mon, 06 Oct 2025 13:13:32 +0000

Tushar Jain, co-founder and managing partner of crypto investment firm Multicoin Capital, has said the GENIUS Act could shift retail deposits from traditional banks to higher-yield stablecoins, creating direct competition between banks and stablecoin issuers once the legislation takes full effect.

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Key points:

The GENIUS Act could shift retail deposits from traditional banks to higher-yield stablecoins, intensifying competition between banks, tech giants, and stablecoin issuers.
Traditional banks may face pressure to raise interest rates, impacting profits, while regulators worldwide, including in Canada and Hong Kong, are considering stablecoin frameworks to remain competitive.
Stablecoins are expected to reshape global finance by enabling faster, 24/7 payments and cross-border transactions, potentially redefining consumer expectations and the future structure of banking.

“The Genius Bill is the beginning of the end for banks’ ability to rip off their retail depositors with minimal interest,” Jain wrote in an X post on Saturday. Jain noted that after the GENIUS Act is fully implemented, major tech companies like Meta, Google, and Apple could begin competing with traditional banks for retail deposits, leveraging stablecoins to provide higher yields, faster settlement, and around-the-clock payment services. “These stablecoins will be embedded into the most widely distributed apps and operating systems in the world,” Jain wrote.

The Genius Bill is the beginning of the end for banks' ability to rip off their retail depositors with minimal interest. Post Genius Bill I expect the big tech giants with mega distribution (Meta, Google, Apple, etc) to start competing with banks for retail deposits.

The tech… https://t.co/SCtHrgNeLI
— Tushar Jain (@tushar_jain) October 4, 2025

Jain added that traditional banks may face pressure to raise interest rates for depositors, which could significantly impact their profits. He also noted that the banking lobby sought to safeguard earnings through the GENIUS Act’s restrictions on paying interest to stablecoin holders.

Following the U.S. rollout of the GENIUS Act, other countries are exploring comparable regulations to stay competitive. In late September, Hong Kong-based fintech firm AnchorX launched AxCNH, a stablecoin pegged to the offshore Chinese Yuan (CNH). The token aims to simplify cross-border payments and settlements, targeting offshore Chinese businesses and nations involved in the Belt and Road Initiative (BRI).

In Canada, Ron Morrow, head of payments at the Bank of Canada, urged regulators to establish a clear stablecoin policy, warning that without action, the country could fall behind others in modernizing payment systems. He emphasized that stablecoins must offer safety and stability on par with traditional bank deposits to be considered money, calling on both federal and provincial authorities to implement a comprehensive framework.

The GENIUS Act’s ripple effects are poised to reshape the global financial landscape, prompting banks, regulators, and fintech innovators to reassess how money moves and earns. As stablecoins gain traction, they could redefine consumer expectations around accessibility, speed, and returns, forcing traditional institutions to adapt or risk losing relevance.

Meanwhile, international developments signal that stablecoin policy is no longer just a domestic matter. The coming years may see digital assets increasingly integrated into everyday finance, with implications for global payment networks, cross-border commerce, and the very structure of banking as we know it.

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China Launches AxCNH Stablecoin in Bid to Challenge Dollar Dominance

Michaela — Mon, 22 Sep 2025 13:21:27 +0000

Hong Kong fintech firm AnchorX has introduced AxCNH, a stablecoin tied to the offshore Chinese Yuan (CNH), marking its entry into the growing global race to develop alternatives to dollar-backed digital currencies.

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Key points:

AnchorX launched AxCNH, a stablecoin pegged to the offshore Chinese yuan, to support cross-border payments and trade.
The company partnered with Zoomlion, Lenovo, and Conflux and listed AxCNH on Kazakhstan’s ATAIX exchange.
Stablecoins are emerging as tools of economic influence, with China aiming to reduce reliance on the US dollar through AxCNH

AnchorX unveiled the launch of its yuan-pegged stablecoin, AxCNH, during the 10th Belt and Road Summit in Hong Kong, according to Reuters. The fintech, which recently became the first to secure a stablecoin license from Kazakhstan’s Astana Financial Services Authority (AFSA), also signed a Memorandum of Understanding with Zoomlion, Lenovo, China Chrilliant Global, ATAIX, and Conflux to explore AxCNH’s use in cross-border payments, trade settlements, digital asset trading, and real-world asset tokenization.

The AxCNH stablecoin is intended to streamline cross-border payments and settlements, with a focus on serving offshore Chinese businesses and nations participating in the Belt and Road Initiative (BRI).

AnchorX and Zoomlion have completed pilot transactions of AxCNH on the Conflux blockchain, Reuters reported. The two firms plan to expand their collaboration to strengthen cross-border payment capabilities, aiming to help Zoomlion and its Belt and Road partners settle transactions more efficiently and at lower cost.

Additionally, AnchorX signed a listing deal with Kazakhstan-based crypto exchange ATAIX Eurasia and launched AxCNH on the Conflux blockchain, where its first trials were conducted. The stablecoin will debut on ATAIX with two trading pairs, AxCNH:KZT and AxCNH:USDT, though access will initially be restricted to professional clients.

For governments, stablecoins represent more than just a financial innovation, they are becoming instruments of economic influence. By issuing or supporting digital tokens tied to national currencies, states can stimulate international demand for their money, reduce reliance on the U.S. dollar, and create new tools to manage inflation.

What began with private firms like Tether and Circle has now evolved into a global contest, where sovereign nations are racing to digitize their currencies. From China’s digital yuan to experiments in Europe, the Middle East, and now Asia-Pacific, the push emphasizes how stablecoins are increasingly viewed as a matter of monetary sovereignty and competitiveness.

For countries participating in the BRI, such tools could redefine trade flows, giving them greater efficiency, transparency, and independence in settlement systems.

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Bank of Canada Urges Stablecoin Rules Before the Country Gets Left Behind

Michaela — Fri, 19 Sep 2025 09:38:03 +0000

The head of payments of the Bank of Canada, Ron Morrow, has urged regulators to establish a clear framework for stablecoins, warning that without action, Canada risks falling behind other nations advancing with similar policies to modernize their payment systems.

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Key points:

Bank of Canada’s Ron Morrow urged regulators to establish a stablecoin framework, warning Canada risks lagging behind other nations moving forward with policies.
He spotlighted the need for faster, cheaper cross-border payments, noting high remittance costs in Canada compared to the U.S. and U.K.
Morrow’s remarks followed the U.S. GENIUS Act, which set the stage for wider stablecoin adoption, amplifying pressure on Canada to modernize its regulatory stance.

“More recently, there is growing interest in using stablecoins for cross-border payments to make transactions faster and cheaper. Globally, stablecoin use has been rising in recent years and now accounts for around US$1 trillion in annual transactions,” Morrow said in a speech on Thursday at the Chartered Professional Accountants conference.

Morrow urged federal and provincial regulators to develop a comprehensive policy framework for stablecoins. He emphasized that for these digital assets to be treated as money, they must offer the same level of safety and stability as funds held in a bank account.

Additionally, Morrow noted that governments around the world are moving ahead with regulations for stablecoins and other cryptocurrencies, aiming to balance consumer protection with innovation. He warned that Canada risks falling behind, as many jurisdictions have already introduced or are close to finalizing rules for crypto assets.

The head of payments spotlighted what he described as a “practical Canadian example,” pointing to immigrants who settle in Canada and seek to send money to their families abroad. He noted that the cost of cross-border transfers remains considerably higher in Canada compared with markets such as the United States and the United Kingdom.

“There is a pressing need for faster, cheaper, more transparent and more accessible cross-border payments services. But these services also need to be safe and secure,” Morrow stated.

Morrow’s remarks come at a time of growing momentum for stablecoins, following President Donald Trump’s signing of the GENIUS Act into law. The legislation is seen as a major step toward mainstream adoption of stablecoins, further intensifying global discussions on regulatory frameworks.

In September 2024, the Bank of Canada revealed it was reducing its focus on developing a retail central bank digital currency (CBDC). The decision followed a public consultation in which 42% of respondents expressed a favorable view of a potential CBDC, while 20% said they disliked or strongly opposed the concept.

Looking ahead, Morrow stressed that Canada’s approach to digital assets will need to balance innovation with trust, ensuring that any future system not only keeps pace with global standards but also delivers clear benefits to households and businesses.

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Bank of England Stablecoin Cap Plan Sparks Backlash From UK Crypto Groups

Michaela — Tue, 16 Sep 2025 10:47:06 +0000

Crypto advocacy groups based in the United Kingdom have urged the Bank of England to reconsider its proposal to cap individual stablecoin holdings, warning the measure would be costly and difficult to enforce.

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Key points:

UK crypto groups push back against the Bank of England’s proposed stablecoin caps, calling them costly, hard to enforce, and potentially harmful to the country’s competitiveness.
Central bankers argue caps are needed to prevent large withdrawals from traditional deposits, which could threaten credit availability and financial stability.
Enforcement of individual stablecoin limits is complex, as issuers lack real-time visibility of token holders, making the process costly and operationally challenging.

According to a report by the Financial Times, the crypto groups pushed back against the Bank of England’s proposed stablecoin limits, warning the policy could hinder the country’s competitiveness compared with other jurisdictions. In a November 2023 discussion paper, the Bank suggested individual caps on digital pounds ranging from 10,000 to 20,000 pounds, roughly $13,000 to $27,000, and solicited feedback on a potential lower threshold of 5,000 pounds.

“Imposing caps on stablecoins is bad for UK savers, bad for the City and bad for sterling,” Tom Duff Gordon, vice-president of international policy at Coinbase, stated. “No other major jurisdiction has deemed it necessary to impose caps,” he added.

Simon Jennings, executive director of the UK Cryptoasset Business Council (UKCBC), argued that imposing individual stablecoin limits is impractical. He noted that issuers lack real-time visibility of token holders, making enforcement both complex and costly.

Central bankers warn that without limits, stablecoins could trigger large withdrawals from traditional bank deposits, potentially threatening credit availability and financial stability. UK regulators stress that these digital assets could disrupt the conventional financial system if left unchecked.

Bank of England Stablecoin Rules Could Impact SHIB Trading

For SHIB holders, the potential impact is clear. Stablecoins serve as one of the primary gateways for trading in and out of SHIB, acting as a bridge between fiat currencies and the token. If the Bank of England imposes caps or other restrictions on stablecoin holdings, UK-based traders could face reduced liquidity, making it harder to execute quick trades or respond to market movements.

Slower trading volumes could also lead to wider spreads and less efficient price discovery, affecting both short-term trading strategies and long-term investment plans. In essence, even though SHIB is not a stablecoin, tighter rules on stablecoins could indirectly constrain SHIB market activity and make it less flexible for holders to manage their positions.

This development spotlights how broader regulatory decisions in the crypto ecosystem can ripple across individual tokens, influencing everything from liquidity to investor confidence.

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Coins vs Tokens: Key Differences Every Crypto User Should Know

Michaela — Mon, 25 Aug 2025 06:07:24 +0000

Key points:

Definition and Structure: Coins are native to their own blockchains (like Bitcoin), while tokens are built on top of existing blockchains (like SHIB on Ethereum).
Purpose and Use: Coins act as general money, store value, and secure networks, whereas tokens serve specialized roles such as accessing services, voting, gaming, or representing NFTs.
Practical Implications: Knowing the difference helps with security, investing, wallet management, and using DeFi applications correctly.
Importance for Crypto Users: Understanding coins vs tokens prevents confusion, boosts confidence, and provides a clearer view of the Web3 ecosystem.

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If you’ve ever dipped a toe into the world of crypto, you’ve probably stumbled across the debate of coins vs tokens, and maybe wondered why everyone seems to use the terms interchangeably. Spoiler: they’re not the same thing, even if people sometimes toss them around like synonyms.

The confusion is totally normal. After all, both live on blockchains, both have value, and both can be traded. But here’s the catch: their roles, how they’re created, and what they’re meant to do are very different.

What Are Coins?

When people start asking about coins vs. tokens, the “coin” part usually makes the most sense. Coins are the OGs of the crypto world. Think Bitcoin and Ethereum, digital assets that live on their very own blockchains. If the blockchain is the country, the coin is the official currency.

Coins aren’t just whipped up out of thin air. They’re created through processes like mining (where computers solve puzzles to add new blocks to the chain) or staking (where holders lock up their coins to help secure the network and earn rewards). In both cases, the network runs smoothly because people are putting in work or resources to keep it safe.

So what do you actually do with coins? A lot, actually:

Payments: Send coins like Bitcoin quickly across borders, no banks required
Value Storage: Hold them long-term, similar to storing gold, to preserve wealth
Network Security: Help power the blockchain by securing the network and validating transactions

Coins are the foundation that makes everything else in crypto possible. Without them, the whole coins vs. tokens conversation wouldn’t even exist.

What Are Tokens?

If coins are the official money of a blockchain, tokens are more like special passes that live on top of an existing blockchain. When people talk about coins vs. tokens, tokens are usually the trickier part to wrap your head around. Unlike coins, tokens don’t have their own blockchain. Instead, they piggyback on platforms like Ethereum or Solana, using those networks to exist and operate.

Tokens come in different flavors depending on what they do:

Utility Tokens: Give you access to a product or service, like paying fees on a platform or unlocking features
Governance Tokens: Let holders vote on decisions in decentralized organizations, like shaping the future of a project
NFTs (Non-Fungible Tokens): Unique digital collectibles, art, or in-game items that you can truly own
Stablecoins: Pegged to real-world assets like the US dollar to keep value steady

So what can you actually do with tokens? A lot of things beyond just storing value:

Access Services: Use tokens to interact with apps or pay for digital services
DeFi Participation: Lend, borrow, or earn rewards in decentralized finance platforms
Gaming: Own in-game items that can be traded or sold
Voting: Influence decisions in DAOs and other community-driven projects

Tokens are the versatile side of crypto, letting people do all sorts of creative and practical things on top of existing blockchains.

Coins vs Tokens: The Key Differences

By now, you probably have a sense of what coins and tokens are, but the real question is how to tell them apart. The coins vs tokens debate comes down to a few key differences that make each type unique.

Ownership of the Blockchain: Coins live on their own blockchains, like Bitcoin or Ethereum. Tokens, on the other hand, are built on top of existing blockchains, borrowing their infrastructure to function.
Function and Purpose: Coins usually act as general money, they can be spent, saved, or used to secure the network. Tokens are more specialized. They can give access to services, let you vote in governance, or even represent unique digital items like NFTs.
Examples Side by Side: Bitcoin is the classic coin, native to its blockchain. SHIB, on the other hand, is a token built on Ethereum, used for various community and decentralized finance (DeFi) activities.

Think of it this way: coins are like a country’s currency, reliable and widely accepted. Tokens are like coupons, membership cards, or tickets, each serving a specific purpose while depending on the larger system around them. Understanding this distinction makes navigating crypto much easier, whether you are trading, investing, or just exploring the space.

Why This Difference Matters

Understanding coins vs tokens is more than just a trivia question. Knowing the difference can actually make your crypto life a lot smoother and safer.

Security and Risk Considerations: Coins often carry different risks than tokens because they operate on their own blockchains. Tokens rely on the security of another blockchain, so knowing the type helps you understand potential vulnerabilities.
Investing and Trading Implications: Coins and tokens behave differently in markets. Coins might be seen as long-term stores of value, while tokens can have very specific use cases that influence their price. Recognizing the difference helps you make smarter investment decisions.
Practical Use: Coins are often easier to spend or store, while tokens unlock services, governance rights, or in-game items. Knowing which is which helps you manage wallets, interact with DeFi apps, or send crypto to friends without mistakes.
Avoiding Confusion: Calling SHIB a coin when it is actually a token may seem small, but it can create misunderstandings about what you can do with it and how it works. Understanding coins vs tokens keeps you confident in your crypto knowledge.

In short, getting this distinction right helps you navigate the crypto space with clarity, security, and a bit more confidence.

Closing Thoughts

The coins vs. tokens debate may seem tricky at first, but here’s the good news: both are essential pieces of the Web3 puzzle. Coins provide the backbone of blockchain networks, while tokens unlock all sorts of creative, practical, and financial possibilities on top of them.

The final takeaway is simple. Understanding the difference between coins and tokens gives you a clearer view of the crypto world. It helps you make smarter decisions, whether you are trading, exploring DeFi, collecting NFTs, or just keeping up with the latest crypto trends. A little knowledge goes a long way in making your journey through crypto smoother, safer, and more fun.

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Stablecoins Explained: How They Connect Fiat and Crypto Worlds

Michaela — Fri, 22 Aug 2025 10:12:12 +0000

Key points:

Bridge Between Fiat and Crypto: Stablecoins provide a steady digital alternative to traditional money, helping users navigate the volatile crypto market without constant worry.
Different Types and Mechanisms: They maintain stability through fiat backing, crypto collateral, or algorithmic adjustments, with minting and redemption ensuring each coin is backed by real assets.
Practical Everyday Uses: Stablecoins enable instant cross-border payments, DeFi lending and borrowing, online shopping, and predictable transactions in gaming and NFTs.
Growing Role in Finance and Web3: Adoption is expanding globally, central banks are exploring digital currencies, and stablecoins are becoming a key tool in the evolving Web3 and DeFi ecosystems.

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If you’ve ever peeked into the world of crypto, you’ve probably noticed one thing right away: prices can swing wildly. One day your favorite coin is soaring, the next it’s taking a nosedive. Enter stablecoins, the digital version of a safety net that keeps your money steady while still letting you play in the crypto playground.

Stablecoins solve a simple but crucial problem: they bridge the gap between the unpredictable world of cryptocurrencies and the familiar stability of traditional money, like dollars or euros. They give people a way to move, spend, and save digital cash without losing sleep over every market dip.

What Are Stablecoins?

So, what exactly are stablecoins? At their core, stablecoins are digital coins designed to keep their value steady. Unlike Bitcoin or Ethereum, which can jump or drop in price in the blink of an eye, stablecoins are meant to feel familiar and predictable, almost like the digital version of cash in your wallet.

The key to this stability is that most stablecoins are pegged to traditional currencies, like the U.S. dollar or the euro. This means that one stablecoin is usually equal to one dollar or one euro, so you can spend or save it without worrying about sudden swings. It’s like having a trusted friend in the crypto world who never loses their cool.

While Bitcoin and Ethereum are exciting for investment and speculation, their value can be unpredictable. Stablecoins, on the other hand, offer a calm harbor in the sometimes stormy seas of crypto. They let you enjoy the benefits of digital money without constantly checking the price charts for heart-stopping surprises.

How Stablecoins Work

Now that we know what stablecoins are, let’s peek under the hood and see how they actually keep their value steady. Not all stablecoins work the same way, but they usually rely on one of three main approaches.

Fiat-Collateralized Stablecoins

Coins like USDC or USDT are backed by real-world money stored in a bank. For every stablecoin in circulation, there’s an equivalent dollar or euro safely held somewhere. This makes them reliable and easy to trust, like digital cash you know will hold its value.

Crypto-Collateralized Stablecoins

These stablecoins, like DAI, are backed by other cryptocurrencies instead of dollars. Smart contracts manage the system, often requiring more crypto than the coin’s value to cover price swings. This keeps things stable even in the unpredictable crypto world.

Algorithmic Stablecoins

Algorithmic stablecoins don’t rely on fiat or crypto collateral. Instead, algorithms automatically adjust the supply to maintain the price. While clever, this approach carries more risk, and some past examples have shown that stability is not guaranteed.

Minting and Redemption

Stablecoins are created through minting. When someone deposits collateral, fiat or crypto, a corresponding number of stablecoins is issued. When coins are returned or destroyed, the collateral is released in a process called redemption. This ensures every stablecoin is backed by a real-world or digital asset.

Everyday Use Cases

Stablecoins are surprisingly handy in real life. You can send money across borders instantly without heavy fees, store value without worrying about crypto price swings, or trade other cryptocurrencies without converting back to fiat. They act as a bridge between the familiar world of money and the exciting world of crypto.

Why Stablecoins Matter

Stablecoins are more than just a digital version of money. For new crypto users, they act as a gentle introduction to the world of digital finance. They let you experiment with sending, holding, and using crypto without worrying about sudden price swings.

They also make global payments much easier. Instead of waiting days for a wire transfer or paying hefty conversion fees, stablecoins allow money to move instantly across borders. For example:

Sending support to family overseas
Paying for services internationally without extra fees

Stablecoins are also key in the world of decentralized finance, or DeFi. They make trading, lending, and borrowing smoother because users can transact without constantly converting back to traditional currency.

Finally, stablecoins provide a refuge from the wild ups and downs of crypto markets. They let you park your funds safely, giving you the chance to plan, save, and participate in the ecosystem with more confidence.

Use Cases in the Real World

Stablecoins are not just a concept, they’re actively being used in ways that make everyday life and digital finance smoother.

One of the most obvious use cases is cross-border payments. Traditional international transfers can be slow and expensive. Stablecoins let money move almost instantly, which is great for sending support to family abroad or paying for services in another country.

In DeFi, stablecoins are the backbone of lending and borrowing platforms. Users can lend their stablecoins to earn interest or borrow them to access liquidity without selling other crypto assets. This opens up financial opportunities without leaving the crypto ecosystem.

Online shopping and digital wallets also benefit. Some platforms now accept stablecoins for goods and services, making it easier to spend digital money without worrying about price swings.

Stablecoins are even making waves in gaming and NFTs. They can be used to buy in-game assets, trade digital collectibles, or participate in virtual economies where prices need to stay predictable. For example:

Buying rare items in blockchain-based games
Trading NFTs without worrying about volatile crypto values
Participating in virtual marketplaces with confidence

These examples show that stablecoins are not just a “crypto safety net.” They are a practical tool bridging digital innovation and real-world finance.

Growing Adoption in Global Finance

The story of stablecoins is far from over. More businesses and individuals are seeing the benefits of stable, fast, and borderless digital money. As adoption grows, stablecoins could become a standard part of everyday transactions, both online and offline.

Central Bank Digital Currencies (CBDCs)

Governments are paying attention too. Central banks are exploring digital versions of their currencies, known as CBDCs, which share similarities with stablecoins. While they may not replace existing stablecoins, they show that digital money is becoming part of mainstream finance.

Stablecoins in Web3 and DeFi

Stablecoins could evolve alongside Web3 and DeFi ecosystems, making digital finance smoother and more accessible. Possible scenarios include:

Using stablecoins for trading, lending, and borrowing in decentralized apps
Facilitating payments in virtual marketplaces and online communities
Powering in-game economies and digital experiences with predictable value

Stablecoins are more than a stepping stone, they could become a core part of how we move, store, and use money in a connected digital world.

Wrapping Up Stablecoins

Stablecoins have earned their place as a bridge between the familiar world of fiat money and the exciting, sometimes unpredictable world of crypto. They offer stability, convenience, and a way to participate in digital finance without constantly worrying about market swings.

For newcomers, stablecoins are a gentle introduction to the crypto space, making it easier to learn, transact, and explore. For experienced users, they are a practical tool for trading, lending, borrowing, and managing risk.

Think of stablecoins as a stepping stone toward a more connected financial world. They make digital money accessible, predictable, and ready to fit into everyday life. As crypto and Web3 continue to grow, stablecoins are likely to remain a key player in shaping the future of finance.

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South Korea Develops Crypto Monitoring System to Combat Financial Crime

Gairika Mitra — Fri, 25 Oct 2024 13:43:18 +0000

South Korea Deputy Prime Minister and Minister of Economy and Finance, Choi Sang-mok, announced on Thursday in Washington, D.C. the establishment of a virtual asset transaction monitoring system.

This initiative aims to ensure the integrity of transactions, particularly in light of rising concerns over cross-border transactions involving stablecoins like Tether. The announcement was made during Choi’s attendance at the G20 Finance Ministers’ Meeting.

Choi underscored the need for such a system due to a troubling increase in illegal foreign exchange activities, including corporate tax evasion and money laundering linked to digital assets.

“We will push for mandatory reporting of stablecoins traded across borders,” he emphasized, highlighting the urgency of the situation. Stablecoins, such as Tether (USDT) and USD Coin (USDC), are gaining traction due to their stable value and efficiency in remittances, but their rising use has raised red flags for regulators.

Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok (second from the right) speaks during a meeting with Korean journalists in Washington, D.C., on Oct. 24 (local time). (The Ministry of Economy and Finance) Source: Business Korea

One of the primary challenges identified by Choi is the absence of a foundational law governing virtual assets in South Korea. He stated, “Since a basic law on virtual assets has not yet been established, it is unclear whether stablecoins traded across borders should be viewed as a means of payment or as capital transactions.” To address this regulatory gap, the government plans to amend the Foreign Exchange Transactions Act, providing a clearer framework for the classification of virtual assets.

South Korea Regulatory Framework for Virtual Assets: Monitoring, Classification, and Economic Insights

Under the proposed amendments, virtual assets will be classified as a “third type,” distinct from foreign exchange and capital transactions. This classification will require virtual asset service providers engaged in cross-border transactions to register in advance and report their activities monthly to the Bank of Korea. The information gathered will be shared with various governmental agencies, including the National Tax Service and the Financial Intelligence Unit, to monitor suspicious transactions and conduct thorough analyses.

Additionally, Choi announced that discussions would commence next month within the newly established Virtual Assets Committee, which will operate under the Financial Services Commission. This committee aims to explore the institutionalization of virtual assets for trade and capital transactions.

Addressing concerns regarding the weakening South Korean won, which recently approached the 1,400 won mark against the dollar, Choi attributed the currency’s fluctuation to external geopolitical factors, rather than fundamental issues within the Korean economy. He stated, “Exchange rates can vary in the short term depending on a country’s macro policies and circumstances.” Choi further explained the complexities surrounding currency valuation, citing the yen’s prolonged weakness despite Japan’s economic competitiveness.

Choi also hinted at potential revisions to this year’s economic growth forecast. Following the Bank of Korea’s announcement of a mere 0.1% growth rate for the third quarter, he noted, “Downside risks to the growth rate have increased, but we need to monitor the situation further.” He reassured that revenue forecasts would primarily rely on corporate income taxes and capital gains from real estate transactions, indicating limited uncertainty in this area.

Lastly, Choi commented on the ongoing challenges faced by Samsung Electronics, viewing the situation as a critical moment for the company and the broader Korean industry. “The crisis of Samsung Electronics signifies a crisis for Korean industry, which has a dual aspect,” he remarked, suggesting that confronting these challenges could pave the way for future growth.

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Stablecoin Stalls in the US Amid Regulatory Uncertainty

Gairika Mitra — Fri, 18 Oct 2024 15:28:05 +0000

Stablecoin growth in U.S. markets has stalled as regulatory delays push activity toward non-U.S. exchanges, reflecting challenges that threaten the country’s leadership in the digital asset space.

Until 2023, U.S.-regulated exchanges saw steady growth in stablecoin transactions, driven by rising global adoption of digital currencies. However, in 2024, this trend reversed, with more stablecoin activity occurring on non-U.S. exchanges. Experts believe this shift signals not a sharp decline in U.S. market participation but rather the rapid rise of stablecoin usage outside the U.S.

Emerging Markets Drive Stablecoin Adoption as U.S. Risks Losing Global Influence

The surge in global stablecoin adoption is especially strong in emerging markets, where local currencies face volatility. These regions increasingly turn to stablecoins, like USDC and Tether, to preserve value and make fast, low-cost transactions. In contrast, U.S.-regulated platforms are growing at a slower pace, reflecting missed opportunities due to a lack of clear regulatory guidance.

According to Circle, the issuer of USDC, the global demand for U.S. dollar-backed stablecoins is strong, especially in areas where access to stable currency is limited. “One way to think about the near-term opportunity for USDC is to look at the global demand for fiat dollar cash,” a spokesperson from Circle explained.

“The Federal Reserve estimates that nearly $1 trillion in U.S. banknotes — 45% of all banknotes outstanding — are held outside the U.S., with two-thirds of all $100 bills in circulation abroad. This demand exists despite the difficulty people outside the U.S. encounter when trying to source U.S. dollars through their local banking systems,” the Circle spokesperson said. The company emphasized the benefits stablecoins bring to those seeking alternatives to traditional banking.

The decline in U.S. stablecoin growth is not just about missed profits; it also impacts U.S. influence in the global financial landscape. Historically, the U.S. dollar played a dominant role in global commerce, but that leadership could erode if stablecoin markets continue to grow outside the country. The situation echoes the rise of Eurodollars, which initially grew with little attention from U.S. lawmakers but later helped solidify the dollar’s role in international markets.

Europe Advances with Clear Regulations, U.S. Scrambles to Keep Up

In contrast, Europe has made significant progress with its Markets in Crypto-Assets Regulation (MiCA), which began to take effect in June 2024. MiCA provides clear legal and regulatory guidelines for stablecoins and other digital assets. This framework is attracting more stablecoin activity to the region, leaving the U.S. at a disadvantage.

Circle warned that the U.S. risks falling behind if it does not implement clear regulations soon. “The absence of a U.S. regulatory framework for dollar-referenced stablecoins represents a threat to American interests,” the company noted.

However, Circle remains optimistic about the future of USDC in the U.S. market. “The U.S. is the home of the dollar, and we are bullish on USDC’s potential here,” the spokesperson concluded.

The post Stablecoin Stalls in the US Amid Regulatory Uncertainty first appeared on The Shib Daily.

2024 State of Crypto Report: Transformative Year for Blockchain Tech and Policy

Gairika Mitra — Thu, 17 Oct 2024 12:40:06 +0000

The newly released 2024 State of Crypto Report highlights dramatic advancements in the cryptocurrency landscape, showcasing unprecedented growth, policy recognition, and technological improvements.

The 2024 State of Crypto Report highlights cryptocurrency’s emergence as a significant topic for policymakers, the many technological upgrades to blockchain networks, and evolving trends among builders and users in the crypto space.

One key area of focus in the report is the rise of stablecoins, often referred to as one of crypto’s “killer apps.” Stablecoins have gained traction, demonstrating their product-market fit in the broader financial landscape. The report also explores the intersection of cryptocurrency with other technological trends, such as artificial intelligence, social networking, and gaming.

Cryptocurrency activity has reached all-time highs, it says, and blockchain infrastructure has matured significantly. This is reflected in the recent scaling upgrades that have dramatically reduced on-chain transaction costs. The rise of Ethereum L2s and other high-throughput blockchains enabled this transformation, making transactions more efficient and affordable.

In addition to these insights, the report introduces the a16z crypto Builder Energy dashboard. This tool enables users to look into the crypto landscape by sharing proprietary data from research, the CSX startup accelerator program, and industry-wide tracking. For the first time, stakeholders can access thousands of aggregated and anonymized data points that reveal what builders are focusing on in the crypto space. This includes information on which blockchains are being utilized, the types of applications being developed, and the technologies that are driving innovation.

Cryptocurrency’s Path Toward Mainstream Adoption

The report outlines seven key takeaways that underline the evolving state of cryptocurrency:

Crypto activity and usage have reached all-time highs
Cryptocurrency has emerged as a crucial political issue in the run-up to the U.S. elections
Stablecoins have found their product-market fit
Infrastructure improvements have significantly increased capacity and reduced transaction costs
Decentralized finance (DeFi) remains popular and continues to grow
Cryptocurrency has the potential to address some of AI’s most pressing challenges
Enhanced infrastructure has unlocked new on-chain applications

The 2024 State of Crypto report closes by highlighting the significant strides made in the state of cryptocurrency across policy, technology, and consumer adoption in the past year. Key milestones include the unexpected approval and listing of Bitcoin and Ethereum ETPs, as well as the passage of important bipartisan crypto legislation. Furthermore, major infrastructure enhancements, such as scaling upgrades and the emergence of Ethereum L2s, have transformed transaction processes and paved the way for innovative applications.

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UAE Central Bank Regulates Algorithmic Stablecoins, Privacy Tokens

Gairika Mitra — Tue, 15 Oct 2024 11:59:16 +0000

The Central Bank of the UAE has begun regulating the virtual asset landscape, particularly focusing on Algorithmic Stablecoins and Privacy Tokens.

Regulators have scrutinized these two categories of digital assets due to their potential for misuse, as well as their impact on the integrity of the financial system. The announcement is seen as a bold step by CBUAE, which has traditionally been conservative in its approach to financial innovation.

As part of these regulatory efforts, the UAE Central Bank enacted a prohibition on the issuance, promotion, and provision of services related to Algorithmic Stablecoins and Privacy Tokens. This prohibition extends not only to individuals or entities based within the UAE but also to those directing activities towards persons in the UAE from abroad.

What Are Algorithmic Stablecoins and Privacy Tokens?

Algorithmic Stablecoins are digital currencies designed to maintain a stable value through algorithmic mechanisms. They often utilize smart contracts to manage supply and demand. Unlike traditional stablecoins, which are typically backed by fiat currencies or other assets, Algorithmic Stablecoins rely on complex algorithms to regulate their value. This makes them more volatile and potentially susceptible to market manipulation.

On the other hand, Privacy Tokens are cryptocurrencies that prioritize user privacy and anonymity. They use advanced cryptographic techniques to obscure transaction details, making it difficult for third parties to trace the flow of funds. While privacy features can enhance user security, they can also facilitate illicit activities such as money laundering and tax evasion.

UAE’s Approach to Virtual Assets and VAT Compliance

This ban applies universally, encompassing all individuals and entities, including those licensed or regulated by the Securities and Commodities Authority (SCA) or a Local Licensing Authority.

The UAE Federal Tax Authority (FTA) earlier announced major revisions to the Executive Regulation of Federal Decree-Law No. 8 of 2017 concerning Value Added Tax (VAT).

These amendments, set to take effect on November 15, 2024, are outlined in Cabinet Decision No. 100 of 2024. They aim to improve clarity, offer detailed guidance, and align VAT procedures with broader tax regulations.

The proposed changes seek to refine existing provisions to enhance compliance and transparency within the UAE’s evolving tax framework. Key focus areas include the export of goods and services, financial services, and virtual assets. Notably, revisions to Articles 30, 31, 42, and 46 will likely significantly impact businesses operating in these sectors.

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Argentina Takes the Lead: Surpassing Brazil in Cryptocurrency Value with $91.1 Billion Received

Gairika Mitra — Fri, 11 Oct 2024 12:15:05 +0000

Argentina leads the region in terms of cryptocurrency value received at an estimated $ 91.1 billion. It’s only slightly ahead of Brazil’s estimated $90.3 billion.

According to Chainalysis’ Global Adoption Index, four of the top 20 countries are in Latin America: Brazil (9), Mexico (13), Venezuela (14), and Argentina (15). The report also revealed that stablecoin-based remittances are gaining traction in these countries. This also includes Latin America as a whole.

Stablecoins Offer Hope Amid Argentina’s Economic Crisis, Becoming a Key Tool for Citizens Battling Inflation and Peso Devaluation

The report also noted that stablecoins provide a path to stability during Argentina’s long-standing economic turmoil. Argentina’s decades-long battle with inflation and the Argentine peso’s (ARS) devaluation has left many citizens searching for alternatives to protect their savings. They were on the lookout for and secure a more stable economic future.

This year, unfortunately, Argentina’s economic situation has been especially volatile. By the second half of 2023, inflation was approximately 143%, the ARS’s value had declined precipitously, and four in 10 Argentinians were living in poverty.

In December 2023, newly-elected president, Javier Milei, announced that the ARS would be devalued by 50%, which he described as “shock therapy,”. He also revealed that the government would cut energy and transportation subsidies. To protect themselves from this economic crisis, some Argentinians have turned to the black market to acquire foreign currencies, most commonly the U.S. dollar (USD). This “blue dollar” is the U.S. dollar traded at a parallel, informal exchange rate, often purchased through clandestine exchange houses called “cuevas,” found throughout the country. Others have explored USD-pegged stablecoins.

Argentina’s Dominance in Stablecoins: A Strategic Response to Inflation and Economic Instability

Argentina’s stablecoin market is among the leaders in the Latin America region. Argentina’s share of stablecoin transaction volume is 61.8%. This places it slightly above Brazil’s share (59.8%) and well above the global average (44.7%), as per the report.

Apart from this, retail-sized stablecoin value (i.e. transactions under $10,000) received in Argentina is growing at a faster rate than the value received in any other asset type. As per the report, it suggests that Argentinians look to stablecoins as a means of mitigating the effects of inflation and currency devaluation.

Their interest in stablecoins highlights the role of crypto in unstable markets. It also showcases how citizens are able to take better control of their financial futures. This happens mostly by embracing cryptocurrency, regardless of official monetary policy.

Argentina’s adoption of crypto-based stablecoins is a testament to the potential for blockchain technology to promote economic stability and prosperity even in challenging economic environments.

ShibaCon, a vision of Shiba Inu creator Ryoshi, is set to make history in Thailand. Join the movement and be part of this landmark event in November. Tickets are available now at shibacon.shib.io.

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The Shib Crypto Recap: Friday

Malaya Ruiz — Fri, 04 Oct 2024 19:51:08 +0000

Friday’s top news headlines bring a wave of security issues within the Web3 ecosystem, highlighting the persistent challenges that threaten the safety of digital assets. Concurrently, there are significant developments in regulatory frameworks, particularly with the introduction of stricter Anti-Money Laundering (AML) guidelines designed to safeguard against illicit activities. Alongside these developments is a growing trend towards integrating traditional financial systems with digital currencies, paving the way for a more cohesive financial landscape.

Stolen Fortunes: $750 Million Lost in Q3 2024 Web3 Hacks and Michael Terpin’s $24 Million Lost in Recent SIM Swap Scam

In its Q3 2024 Hack3d report, CertiK found that Web3 security breaches resulted in over $750 million lost from 155 incidents. This brings the total losses for 2024 to almost $2 billion. Phishing and private key compromises led to $668 million in losses. One major phishing incident involved a whale losing $238 million in Bitcoin. Private key attacks resulted in $324.4 million lost over ten incidents. The report highlighted two key breaches: WazirX lost over $231 million in July, and a whale lost 4,064 BTC valued at $238 million in August. Ethereum was the top target in Q3 2024, with $387.89 million lost due to various hacks and scams.

On the subject of scams, prominent cryptocurrency investor Michael Terpin has sued a teen for allegedly stealing $24 million worth of digital assets via a SIM swap scam. He claims the thief exploited a vulnerability in his two-factor authentication (2FA) system. Additionally, Terpin is pursuing $45 million in damages from AT&T, accusing it of negligence in preventing the attack. The teenager reportedly gained control of Terpin’s SIM card, which allowed him to bypass the 2FA safeguards. A SIM swap attack involves stealing a person’s phone number, enabling the attacker to intercept calls and messages. This tactic undermines security measures that rely on SMS for verification, often using public data or social engineering, similar to incidents involving Ethereum co-founder Vitalik Buterin.

Taiwan’s FSC Tightens Grip on Crypto: New Anti-Money Laundering Regulations Announced

Taiwan’s FSC has unveiled stricter anti-money laundering (AML) measures for cryptocurrency services. They have created a draft titled the “Money Laundering Prevention and Registration Measures for Virtual Asset Service Providers” or VASP Registration Measures. This includes amendments to existing regulations and introduces new anti-terrorism measures. Key aspects cover business categories, registration procedures, and industry compliance. The FSC will eliminate the current compliance statement system, requiring all service providers to register under the new framework.

A New Era in Banking in 2025: Swift to Test Digital Asset Transactions and Spain’s BBVA to Launch Own Stablecoin

Starting in 2025, banks across North America, Europe, and Asia will conduct live trials of digital asset transactions using the Swift network. Swift intends to link central bank digital currencies (CBDCs) globally while merging digital asset and cash networks. The trials will focus on payments, foreign exchange, securities, and trade, allowing multi-ledger Delivery-versus-Payment and Payment-versus-Payment transactions. With 134 countries exploring CBDCs, the tokenized asset market could hit $16 trillion by 2030. These trials aim to integrate digital assets with traditional currencies, enhancing transaction efficiency.

In a similar development, BBVA, Spain’s second-largest bank, plans to launch its own stablecoin in 2025 in partnership with Visa. Stablecoins, which are digital currencies pegged to assets like the U.S. dollar or euro, are increasingly popular among businesses and consumers. BBVA is currently testing its stablecoin in the sandbox phase of Visa’s new project. The aim is to move to the prototype and operational phases by next year. Chainalysis reports that users have utilized stablecoins for over half of all on-chain transaction volume involving centralized services from June 2022 to July 2023.

ShibaCon, a vision of Shiba Inu creator Ryoshi, is set to make history in Thailand. Join the movement and be part of this landmark event in November! Tickets are available now at shibacon.shib.io.

The post The Shib Crypto Recap: Friday first appeared on The Shib Daily.

Stablecoin Payments in Singapore Hit Record High in Q2, Approaching $1 Billion

Gairika Mitra — Thu, 12 Sep 2024 13:37:53 +0000

Stablecoin payments in Singapore hit a record high of nearly $1 billion in the second quarter, driven by merchant transactions, according to a report from Chainalysis on Wednesday.

Eric Jardine, Cybercrimes Research Lead at Chainalysis, believes that businesses in Singapore are attracted to stablecoins. It is because of their “efficiency and low cost.” Users can now utilize Singapore’s XSGD stablecoin, along with Bitcoin, Ether, Circle USD, and Tether, to pay for various services.

Decoding Stablecoins

A type of cryptocurrency designed to maintain a stable value, stablecoins are mostly pegged to a fiat currency like the U.S. dollar. People often use stablecoins for crypto trading, making them less volatile than traditional cryptocurrencies like Bitcoin and Ethereum. This stability, along with other benefits of blockchain technology like speed and lower transaction costs, makes stablecoins a more preferred option.

Jeroen Hesp, a notable crypto entrepreneur, commended stablecoins for their ability to “revolutionize” money transfers. According to him, stablecoins helped move over $3 trillion worth of value in Q2 of 2024, making it the fastest growing sector in crypto right now.

Singapore has stepped up its efforts concerning digital assets, concentrating on the advantages of blockchain technology. Last year, the Monetary Authority of Singapore (MAS) announced a regulatory framework to bring about a high value of stability for stablecoins.

The MAS shared that its regulatory framework will apply to single-currency stablecoins (SCS) pegged to the Singapore dollar or any G10 currency issued in Singapore. Organizations issuing the SCS will have to fulfill requirements regarding several key areas. These include value stability, capital, redemption at par, and disclosure.

Only those issuers who fullfill all of these requirements can apply to the MAS for their stablecoins to be recognized. According to the MAS, this label will allow users to easily identify stablecoins regulated by the MAS, distinguishing them from other digital payment tokens, including unregulated stablecoins.

Singapore’s Growth as a Crypto Market

The Shib Daily reported earlier about Singapore’s forward-looking stance in the casino industry. It recently approved cashless gaming transactions, however it will not allow any crypto transactions yet.

Reflecting a more supportive stance on cryptocurrency, cryptocurrency exchange OKX has just acquired a full license in Singapore, known as the Major Payment Institution (MPI) license, allowing crypto trading and cross-border transactions.

The post Stablecoin Payments in Singapore Hit Record High in Q2, Approaching $1 Billion first appeared on The Shib Daily.

Sony Bank to Launch New Yen-Pegged Stablecoin with Ethereum Layer 2

Gairika Mitra — Tue, 10 Sep 2024 17:03:15 +0000

Sony Bank, a subsidiary of Sony Group Corporation, is venturing into the cryptocurrency space by developing a yen-backed stablecoin.

This initiative, in collaboration with Ethereum Layer 2 scaling solution Soneium, aims to bolster transaction efficiency and reduce costs by operating on a second-layer protocol.

The announcement was first shared on social media by JC, a well-known figure in the decentralized finance (DeFi) community.

“Ethereum Layer 2 Soneium by Sony will create a stablecoin for the Japanese Yen with Sony Bank. This is a very smart move by Sony,” JC commented, highlighting the strategic significance of this development.

Stablecoins like Soneium are gaining traction in the crypto market due to their ability to maintain price stability, contrasting with the volatility experienced by cryptocurrencies such as Bitcoin and Ethereum. By leveraging the Soneium platform, Sony’s stablecoin aims to address scalability challenges within the Ethereum network, enabling quicker and more economical transactions.

Sony Bank is currently evaluating the compliance of stablecoin transfers with Japanese regulatory standards, ensuring that their new digital currency aligns with national legal requirements.

A competitor in Ripple?

The global stablecoin market is witnessing substantial growth, with major players like Ripple advancing initiatives. Ripple’s Chief Technology Officer, David Schwartz, recently disclosed that their new stablecoin, RLUSD, will initially be available only to institutional investors. Schwartz elaborated on social media that retail investors would require intermediaries such as exchanges to access RLUSD upon its release.

Currently, Ripple is conducting trials for its stablecoin on both its native and Ethereum’s blockchains. According to Coinspeaker, Ripple is also exploring the integration of smart contracts into its XRP Ledger and plans to introduce an Ethereum Virtual Machine sidechain to enhance interoperability with other blockchains.

Schwartz recently commented on X where he clarified that RLUSD will not be directly accessible to retail investors at launch. He added that people would need to acquire the stablecoins with the help of an exchange or other intermediaries.

It will probably only ever be available directly to institutions. Can you get USDC from Circle or USDT from Tether, because I can't.
— David "JoelKatz" Schwartz (@JoelKatz) September 8, 2024

As of this writing, Ripple’s stablecoin is still in its testing phase, and trials are conducted on Ripple’s and Ethereum’s blockchain. Coinspeaker writes that Ripple is looking forward to leveraging smart contracts into its XRP Ledger. It is also likely to introduce an Ethereum Virtual Machine sidechain to XRPL in order to enhance interoperability with other blockchains.

As for Sony Bank, the experimental process will likely continue for several months. The firm will also take care of whether or not any legal issue arises out of it. JC’s post notes reveal that Sony Bank’s goal is to make sure that individuals can transfer money and make payments with ease. It also aims to achieve all these by generating lower transaction fees while using stablecoins, thus, amplifying the use of digital assets in the banking space.

The post Sony Bank to Launch New Yen-Pegged Stablecoin with Ethereum Layer 2 first appeared on The Shib Daily.

Venezuela Expedites Cryptocurrency Transition Amid Reinstated Oil Sanctions

Violet Vallaya — Tue, 23 Apr 2024 17:08:47 +0000

Amid escalating geopolitical tensions and enduring financial constraints, Venezuela’s state-owned oil company, PDVSA, is eyeing a strategic shift toward using cryptocurrency as a potential workaround to circumvent the latest sanctions imposed by the United States.

The move underscores PDVSA’s ongoing struggle to navigate the intricate web of international sanctions that have severely hampered its ability to conduct global transactions, Reuters reported.

PDVSA, long in the crosshairs of international sanctions due to its close affiliations with the Venezuelan government, finds itself grappling with mounting obstacles in accessing foreign bank accounts, a critical lifeline for conducting international business.

Over the past year, the company has been slowly moving toward accepting Tether (USDT) as payment for oil. The Shib Daily has contacted PDVSA for comment and will update this report if a response is received.

Tether represents a category of cryptocurrencies known as stablecoins, engineered to maintain a stable value by tethering their worth to a designated asset, typically the U.S. dollar.

In the case of USDT, each token is backed by an equivalent reserve of U.S. dollars, assuring stability amid the volatility rampant in traditional cryptocurrencies like Bitcoin.

Venezuela, known to possess the largest proven oil reserves globally, has long grappled with a myriad of economic tribulations, including hyperinflation, political turmoil, and stringent capital controls. In response to these challenges, Venezuelans have increasingly turned to alternative financial avenues, with cryptocurrencies emerging as a prominent refuge.

The significance of stablecoins, particularly in the Venezuelan context, cannot be overstated. With hyperinflation reaching unprecedented levels, conventional currencies have proven unreliable, propelling the adoption of cryptocurrencies as a means of preserving value. While Bitcoin is well-known, its volatility makes it risky for storing value. Stablecoins pegged to stable assets like the dollar, offer a more secure alternative in this context.

Venezuela’s relationship with cryptocurrencies traces back to the onset of hyperinflation in the country in 2014, which precipitated a widespread erosion of faith in the national currency. Subsequently, cryptocurrencies, notably Bitcoin, emerged as a beacon of financial stability, with platforms like LocalBitcoins playing a pivotal role in fostering their adoption within the nation’s borders.

However, despite the initial enthusiasm, Venezuela’s official foray into cryptocurrency in 2018 failed to gain widespread traction, leading to its eventual discontinuation early this year.

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New Legislation on Stablecoins: A Game-Changer in the Crypto Landscape

Saha Swatilakha — Wed, 17 Apr 2024 15:13:04 +0000

In a groundbreaking turn of events, the landscape of cryptocurrency regulation is poised for a significant shift as key lawmakers in the U.S. Congress intensify efforts to establish comprehensive regulations for stablecoins. Recent discussions between House Financial Services Chair Patrick McHenry, Ranking Member Maxine Waters, and Senate Majority Leader Chuck Schumer have injected fresh momentum into the long-debated stablecoin legislation, hinting at potential action during the upcoming summer session or the year-end lame-duck session.

The urgency surrounding the Federal Aviation Administration (FAA) reauthorization, initially set for a May 10 deadline, has opened up a window of opportunity for Congress to craft a broader legislative package that encompasses stablecoin regulation. This strategic move could pave the way for a more holistic approach to financial technology regulation, addressing critical issues of safety and regulatory clarity.

House leaders Waters and McHenry have been diligently working on a regulatory framework for stablecoins, emphasizing the need for clear jurisdictional guidelines for regulatory authorities. Despite advancing the bill, partisan disputes and contentious provisions related to the involvement of state regulators have hindered progress, underscoring the complexity of navigating the regulatory landscape in the crypto sphere.

Simultaneously, Senators Cynthia Lummis and Kirsten Gillibrand are gearing up to introduce a bill aimed at enhancing consumer protection and clarifying the regulatory environment for stablecoins. Discussions are underway to potentially link this initiative with the Secure and Fair Enforcement Regulation Banking Act, which seeks to facilitate banking services for the marijuana industry. However, challenges loom large, with opposition from key lawmakers posing a significant hurdle to achieving a legislative compromise.

As the legislative journey unfolds, the possibility of attaching the stablecoin bill to substantial legislative efforts like the National Defense Authorization Act (NDAA) during the year-end lame-duck session remains a tantalizing prospect. The evolving dynamics in Congress, coupled with the growing emphasis on regulatory clarity in the crypto space, signal a pivotal moment in the world of digital assets.

The post New Legislation on Stablecoins: A Game-Changer in the Crypto Landscape first appeared on The Shib Daily.

Stablecoins – The Shib Daily

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