This episode of What’s Ahead delves into the reasons that top U.S. financial market and bank regulators are dreading the rise of a new type of cryptocurrency: stablecoins.
Unlike Bitcoin and its brethren that fluctuate like yo-yos, stablecoins are tied to a specific asset, such as the dollar or gold, giving them a stability ideal for conducting commercial transactions. Done right, they are a substitute for cash.
With blockchain, stablecoins cut out the layers involved in today’s complex and expensive payment system. For insistence, merchants would no longer have to take credit cards with their 2% to 3% fees.
More ominous for politicians and central banks, stablecoins could quickly become alternative currencies to those issued by governments.
Some commonsense regulation is needed, such as insuring that an issuer actually has the assets to back up its coins.
But make no mistake—the Janet Yellens of the world are out for blood.Follow me on Twitter. Send me a secure tip.
Steve Forbes is Chairman and Editor-in-Chief of Forbes Media. Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers,… Read More
Steve Forbes is Chairman and Editor-in-Chief of Forbes Media. Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers, politicians and pioneers in business and economics in honest conversations meant to challenge traditional conventions as well as featuring Steve’s signature views on the intersection of society, economic and policy. Steve helped create the recently released and highly acclaimed public television documentary, In Money We Trust?, which was produced under the auspices of Maryland Public television. The film was inspired by the book he co-authored, Money: How the Destruction of the Dollar Threatens the Global Economy – and What We Can Do About It. Steve’s latest book is Reviving America: How Repealing Obamacare, Replacing the Tax Code and Reforming The Fed will Restore Hope and Prosperity co-authored by Elizabeth Ames (McGraw-Hill Professional). Steve writes editorials for each issue of Forbes under the heading of “Fact and Comment.” A widely respected economic prognosticator, he is the only writer to have won the highly prestigious Crystal Owl Award four times. The prize was formerly given by U.S. Steel Corporation to the financial journalist whose economic forecasts for the coming year proved most accurate. In both 1996 and 2000, Steve campaigned vigorously for the Republican nomination for the Presidency. Key to his platform were a flat tax, medical savings accounts, a new Social Security system for working Americans, parental choice of schools for their children, term limits and a strong national defense. Steve continues to energetically promote this agenda.Read Less