he second part to your question is interesting because
The second part to your question is interesting because I think the current stablecoin regulation they're proposing is a little bit reactionary. What's currently going on is that people are saying that stablecoin issuers like a Circle and Tether need to have banking licenses. That's the conversation. But that doesn't make sense if you think about it, because there's a lot of experimentation allowed in even the traditional financial space. Things like money market fund...
he second part to your question is interesting because
The second part to your question is interesting because I think the current stablecoin regulation they're proposing is a little bit reactionary. What's currently going on is that people are saying that stablecoin issuers like a Circle and Tether need to have banking licenses. That's the conversation. But that doesn't make sense if you think about it, because there's a lot of experimentation allowed in even the traditional financial space. Things like money market fund...
If a central bank pegs their currency to gold
Stablecoin market capitalization statistics | Source: U.S. Treasury Stablecoin Report CT: Do you see a potential crackdown looming in stablecoin the sector? And what is Frax doing to comply with relevant stablecoin regulations? SK: There are two parts to this. I don't know if I would call it a crackdown, but I do see a lot of regulation coming for at least the fiat coins, which have traditional financial assets that back them; like cash equivalents, or actual cash in depository accounts....
If a central bank pegs their currency to gold
Stablecoin market capitalization statistics | Source: U.S. Treasury Stablecoin Report CT: Do you see a potential crackdown looming in stablecoin the sector? And what is Frax doing to comply with relevant stablecoin regulations? SK: There are two parts to this. I don't know if I would call it a crackdown, but I do see a lot of regulation coming for at least the fiat coins, which have traditional financial assets that back them; like cash equivalents, or actual cash in depository accounts....
Growth in cryptocurrency activities | Source: BIS
Cointelegraph: There are many algorithmic stablecoins out there, such as Terra USD, Ampleforth, etc. In your opinion, what makes Frax unique? Sam Kazemian: What makes Frax unique is that we have a system where our protocol expands and contracts supply in various places across blockchain protocols, and targets the exchange rates of the Frax stablecoin out in the open market. We like to compare it to a central bank. When it issues a currency, it never says 'hey, you can come to redeem it f...
Growth in cryptocurrency activities | Source: BIS
Cointelegraph: There are many algorithmic stablecoins out there, such as Terra USD, Ampleforth, etc. In your opinion, what makes Frax unique? Sam Kazemian: What makes Frax unique is that we have a system where our protocol expands and contracts supply in various places across blockchain protocols, and targets the exchange rates of the Frax stablecoin out in the open market. We like to compare it to a central bank. When it issues a currency, it never says 'hey, you can come to redeem it f...
Frax co-founder Sam Kazemian believes stablecoin
But central banks, the issuers of traditional fiat money around the globe, do not seem to be big fans of stablecoins. A sharp increase in supply coupled with a lack of relevant regulations has led to concerns that these stable blockchain assets could threaten the current financial order. Fiat money stablecoins, such as those created by Circle (USDC) and Tether (USDT), may require banking licenses in the future to operate. Thus far however, regulators have not been keen to take aim on algorith...
Frax co-founder Sam Kazemian believes stablecoin
But central banks, the issuers of traditional fiat money around the globe, do not seem to be big fans of stablecoins. A sharp increase in supply coupled with a lack of relevant regulations has led to concerns that these stable blockchain assets could threaten the current financial order. Fiat money stablecoins, such as those created by Circle (USDC) and Tether (USDT), may require banking licenses in the future to operate. Thus far however, regulators have not been keen to take aim on algorith...
A blanket ban looming on the horizon?
According to reports from local media, the Indian government will not move for an outright ban on crypto and will instead regulate the sector. On Nov. 23, Cointelegraph reported that the Indian government was considering a bill proposing the creation of an official digital currency while imposing a ban on all “private” cryptocurrencies. The news sparked panic selling on local crypto exchange WazirX the following day. The bill’s vague wording and lack of clarification from the government have ...
A blanket ban looming on the horizon?
According to reports from local media, the Indian government will not move for an outright ban on crypto and will instead regulate the sector. On Nov. 23, Cointelegraph reported that the Indian government was considering a bill proposing the creation of an official digital currency while imposing a ban on all “private” cryptocurrencies. The news sparked panic selling on local crypto exchange WazirX the following day. The bill’s vague wording and lack of clarification from the government have ...
