Stablecoins ‘Threaten Global Financial Stability’, Fed Warns


Zero Hedge: The report comes as the Fed takes an increasing interest in digital currency. As Cointelegraph reported earlier this month, the central bank is currently looking for a dedicated research manager for the sphere, as China prepares to launch its state-backed digital currency.

At the same time, a former advisor to U.S. President Donald Trump revealed last month he plans to issue his own stablecoin, which is not fully backed by reserves.

U.S. lawmakers have sought to vet existing stablecoin offerings, notably market leader Tether (USDT), which currently faces a multibillion-dollar lawsuit that Bitcoin (BTC) figures have broadly dismissed.

This week, Fed chair Jerome Powell meanwhile admitted that the $23 trillion U.S. national debt was no longer “sustainable,” but that the consequences of not paying it off were not critical. more …

Opinion: Not critical or not possible? The amount of austerity needed to pay off 23 trillion in US debt would mean nosebleed tax rates, morale-killing wealth taxes, job-killing corporate taxes, and confiscatory estate taxes which are theoretically not possible since the depression it would cause would bring such fear that the plan would be scrapped anyway.

Funny that looks an awful lot like Elizabeth Warren’s plan, and even the most far left president in US history, who is now wealthy, seems to be against it:

The average American doesn’t think we have to completely tear down the system and remake it” Obama opined. “Even as we push the envelope and we are bold in our vision, we also have to be rooted in reality,” said the man who told Joe the plumber “we need to spread the wealth around it’s good for everybody.”

Funny how the now uber-rich O, who is now wealthy enough to own a $15,000,000 summer home mansion on the ocean in Martha’s Vineyard (even while sea levels are supposedly rising) seems to be against ‘crazy stuff’ which no doubt means taking the wealth from the rich. That from the man who said “I do think at a certain point youve made enough money”.

I digress.

Stable coin, Bit Coin, Libra, the name is irrelevant. When the dust settles, some digital currency will emerge as world reserve currency, and I’m guessing the change from paper currencies and the old way of doing things will end/begin very abruptly.

What I still can’t let go of is how all that can happen without central banks running the show.