Cryptor regulation/stable coins: Great Britain wants to contain alternative currencies

The United Kingdom is preparing to capture the crypto bull with a comprehensive new regulatory system. Although welcome, this comes too late to prevent numerous small investors from being kicked with feet from the FTX collapse.

stable coins that are typically bound to a dollar deserve special attention. These are often treated as a safer crypto. The breakdown of a 9-billion dollar deal between Bob Diamonds Spac and Circle, which the second largest stablecoin USD does questions about whether this security exists.

CIRCLE has positioned USDC as a transparent option in a $ 140 billion market, in which questions about the reserves to cover the tokens in circulation are widespread. His public submissions show a breakdown of the $ 44 billion in cash and government bonds.

stable coins can be more than just a driveway to the crypto casino circle. USDC was used to send help to Venezuelans, while Visa and Mastercard have tested it as a means of processing transactions. In happier times, FTX said that it paid a large part of his team in USDC.

But FinTechs like Wise and Remitly have already reduced the costs for cross -border transfers without a synthetic dollar. And since stable coins are mainly used for the trade in cryptocurrencies, the assets of its operators strongly depend on this cowboy market. The value of the USDC in circulation has shrunk to $ 43 billion today after the collapse of FTX of more than $ 55 billion.

Stable coins often do not do justice to their name. Analysts from JPmorgan found that the four largest coins routinely were the black Peter Brachen and between 25-40 percent between April and July 2021. This May, Tether's 65-billion dollar dairy lost its $ 1 binding and briefly fell on a deep stand 95.11 cents after the collapse of Terrausd, a stable coin worth $ 18 billion, which was based on algorithms to keep them stable.

Most of the focus on stable coins has been to improve disclosure in recent years. Regulation can improve this, but will not solve the bigger problem. Since the FTX attachment spreads further, it is difficult to say that there is a coin combined with cryptocurrency can sell as stable.