Blockchain technology, although its impact has affected various sectors, but its impact on the banking sector is significant and has made central banks re-change and change their perception of this technology.
In its latest report on financial stability, the United States' Federal Reserve said that the economy has flexibility.
While the rise in debt is a cause for concern, there is still time before the devastating effects arise from the rise in the number of companies unable to pay debts.
According to the report, low interest rates and stable currencies pose a major threat to future economic stability.
The report concluded:
The ability to create a stable payment network for cash very quickly on a global level poses important challenges and risks related to financial stability, monetary policy, guarantees against money laundering, terrorist financing, and the protection of the consumer and the investor.
While crypto traders continue to stifle the best blockchain and cryptocurrency projects, major technology companies are infiltrating them faster than the market imagines.
If you are new in this field, you can think about what blockchain technology is and know the basics that lead to this massive growth in this industry as a whole.
Stable currencies issued by the private sector and international competition leave few options for central banks:
The blockchain-based currency provides smooth, transparent and efficient global payments.
However it can also be used for money laundering and other international crimes, so many global governments are wary of them.
Stable currencies became prevalent in 2019 after the announcement of the "Libra" coin by Facebook and news about China's development of its digital currency.
In addition to the presence of many independent private efforts from various international companies and banks such as: “JP Morgan” and “Walmart” which are preparing to issue stable currencies supported in US dollars.
Thus, the natural way for central banks is to issue their own cryptocurrencies as well.
Samson Mao, one of the leading cryptocurrency businessmen and analysts, spoke about the current state of the stable currency market, led by the USDT, saying:
Stable currencies are temporary.
The main threat these currencies face is stable national digital currencies.
But how open will these national cryptocurrencies be?
… If the national digital currencies succeed, the stable cryptocurrencies will have no reason to exist.
The growth of stable cryptocurrencies and national currencies will eventually lead the world towards Bitcoin.