They allow people to save their portfolios from crashing when the bull market ends.. Yet, with 2022, we saw the full on collapse of the worlds largest stablecoin, which had a market cap of nearly 19 billion dollars. UST and its collapse is bringing on big changes, including a United States, CBDC stablecoin.. When will this happen, and what does it mean for cryptocurrency Find out in just over 10 minutes, because its time for Chico Crypto Yup at its peakTerras UST was the worlds 3rd largest stablecoin and the algorithmic stablecoin was powered by the protocols staking and mining token Luna., Which at its peak, was the worlds 7th largest crypto. Before the big crash of UST and Luna? There was nearly 50 billion dollars of valuewhich was almost completely wiped. Out. Gone in the blink of any eye Which has caused regulators across the globe to start looking into stablecoins and what they mean for this world., The USs largest banking regulator, the acting comptroller of the currency, Micheal Hsu spoke on the collapse earlier. This month. Lets hear what he had to say now. Stablecoins are not stable. So what are the FEDs going to do about it? Well, they are here to protect How exactly Well with stablecoin regulation, of course, So what is going to happen – and when is this regulation coming Well here – is what I find interesting reading in between the lines.. Here we can see the collapse of UST happened in Early May of this year, the 9th to be exact.

. What happened just 1 month before this? A top US lawmaker proposed a sweeping stablecoin regulation framework called the Stablecoin Trust Act.. This came from the Senate banking committee and the the bill would define a payment. Stablecoin authorize the Office of the Comptroller of the Currency OCC to create a new license specific to stablecoin issuers, allow insured depository banks to issue payment stablecoins and address state regulatory oversight of this segment of the crypto industry.. This basically means removing all the power of stablecoins from the crypto industry and transferring it to the Banks and to the OCC of which Micheal Hsu heads.. So when could something like this be coming? Well, the article says n. Toomey, whose term ends at the end of the year has announced he will not seek re election, meaning he has roughly eight months to chart a path forward for the proposal if it is not passed by Congress by 2023.. If this bill is to succeed, it would need to be passed by the beginning of 2023. In just 6 months. Now, on June 17th Federal Reserve chairman homeboy Jerome Powell, had remarks about a US CBDC stablecoin lets hear what he had to say about this. The US, FED and government is actively considering issuing their own US dollar CBDC, which of course, would be a stablecoin pegged to a dollar..which. They even have a whitepaper forreleased at the beginning of this year.. The paper is very interesting, including outlining the plans.

. It says To address the risks of payment stablecoins. The Presidents Working Group report recommends that Congress act promptly to enact legislation that would ensure payment, stablecoins and payment. Stablecoin arrangements are subject to a consistent and comprehensive federal regulatory framework. Remember this was released in January of this year. By April we had a draft bill. The Stablecoin Trust Act emerge. The whitepaper then says thisIt is important, however, to consider the implications of a potential future state in which many foreign countries and currency unions may have introduced CBDCs.. Some have suggested that if these new CBDCs were more attractive than existing forms of the U.S. dollar, global use of the dollar could decreaseand a U.S. CBDC might help preserve the international role of the dollar.. They are looking to preserve the US dollars dominance through a CBDC. As other nation states are planning on launching onewith one already in production from the United States biggest adversary.China, who is setting the international standard for a CBDC with e CNY. Soooo. Is the US going to just let China dominate the future of payments? No, no! No! My friendsthey already are designing their CBDC and stablecoin. Just 1 month after the whitepaper from the FED. In February a multi year research project was announced, codenamed project Hamilton.. The announcement says: Project Hamilton is a multi year collaborative research project between the MIT Digital Currency Initiative and the Federal Reserve Bank of Boston.. The goal of Project Hamilton is to investigate the technical feasibility of a general purpose, CBDC that could support a payment economy at the scale of the United States.

Now the US has already been showing off what Hamilton can do compared with Chinas e CNY.. This graph shows on the lower range Hamilton, can do 170 thousand Transactions per second and 1.7 million on the upper range., While e CNY can do just 10 thousand lower range and 300000 at its max.. So my friends, a US stablecoin and CBDC, is researched planned. It is coming and could be making its first appearance in 2023.. What does this mean for other stablecoins? Well, not good for most in my opinion.. As we know, Tether USDT is in regulators crosshairs and has been for years.. They want fully audited fully backed stables.and Tether. Doesnt meet those requirements.. Also, the US government could announce a ban on algorithmic stablecoins, as Terra Luna was algorithmic.. Now there are good algo stablecoins out there who have held their peg and stood the test of time. like DAIbut that doesnt matter to regulators. One bad apple. Could ruin it for all of them, But there is one stablecoin that could survive this all. And that is USDC. Usdc has been infiltrating the traditional financial system for some time.. In March of last year, Visa became the first major payments network to settle transactions in the stablecoin.. Also USDC issuer Circle is getting close with Federal officials. Washington post dropped this article in February, As the Fed considers minting the first digital dollar. It is tapping experts from a crypto company with a stake in the outcome Link 12 Robert BenchLink 12 Kevin KarwaskiLink 13 Anders Brownsworth.

This includes Circle founder Jeremey, Allaire., And the article covers project Hamilton from the Boston Fed.. They say The Boston Fed continues to build a team with leading technology experts from multiple organizations, one of which is Boston based Circle. A handful of former Circle executives have played key roles in the effort. According to the Tech Transparency Project report, which cites public statements by the Boston Fed and publicly available, LinkedIn profiles, Robert Bench formerly Circles, chief compliance officer and associate general counsel – has led the Boston Feds team since joining the bank in 2019., Kevin Karwaski, who spent five years At Circle, most recently as manager of trading infrastructure joined the bank a year ago as principal architect on the digital dollar project. Anders Brownworth held the title Chief Evangelist at Circle and worked five years there. As a senior software engineer, before joining the project at the Boston Fed in the spring of 2020.Tyler, Frederick, a compliance manager for Circle spent two years at the bank.. A fifth Circle. Alum John DiThomas, who worked in compliance for the company, joined the Boston Fed in the spring of 2021, although it is not clear whether he is working on the digital dollar. Effort. 5 high level circle. Employees who helped create USDC are now part of the Boston FED. With 4 out 5 confirmed to be working on project Hamilton., I would say Circles: USDC is in a pretty solid position in terms of not being banned or outlawed.

Althoughthis isnt, all peaches and roses for USDC., Because of how close they are getting with regulators, its possible Usdc forces KYC on its users and if they dont complythey, could end up freezing the stablecoin asset. So my friends regulation is coming for stablecoins, but also the US is launching their owna. Cbdc. Stablecoins are supposed to be a place for safety, but its about to become a minefield. Choose. Wisely.

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