US Federal Reserve officials are quite concerned about the stablecoins like USDT and USDC. Recently, Michael Barr, the Fed’s representative has expressed the firm’s growing concern about the utility of unregulated stablecoins which are pegged to the US dollar. Apart from these two coins, there are few other stablecoins which struggle to mirror the worth of the US dollar (USD)
Stablecoin Adoption: A Threat to US Payment System?
Michael Barr shared his views about the pros and cons of stablecoins at a conference organized by the Federal Bank of Philadelphia. Barr was assigned with the duties of Vice Chair who has been supervising the operations of the central bank since last year. He discussed his views about stablecoins and his concerns if stablecoins were to replace USD.
Barr said that digital currency can be a crucial threat to the US payment system, monetary policy, and financial stability. Stablecoins like USDT and USDC were first launched back in 2014 and have been widely used in the crypto industry. And now their popularity has been so increased among the crypto community, it can be expected that these stablecoins may replace or become equivalent to USD.
USDT and USDC
USDT is a significant digital asset of Tether holdings and has great admiration and a big circulation volume in the crypto industry. Currently, USDT has a market cap above $83 billion and is ranked third number in coinmarketcap. Moreover, USDT is considered to be the most valuable virtual asset after Bitcoin (BTC) and Ethereum (ETH).
USDC is another stablecoin which has seen a bit slump in the last couple of months due to its association with the Silicon Valley Bank collapse. USDC is considered to be the second most valuable stablecoin after USDT and is listed in the top 10 crypto assets. The worth of USDC can be imagined by the fact that USDC is considered to be more valuable than Tron and Cardano.
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