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Yes, we are talking about the United States Stablecoin Bill. It’s a plan that will gradually regulate the stablecoin peg with U.S. dollar reserves via central bank-issued CDBCs. The aim is to end the current fiat domination financial system, creating a diverse nationwide banking system with centralized clearing and settlement centers. The Stablecoin Bill will implement these changes along with regulations to restrict the assets that can go back to the stablecoin reserve and help the cryptocurrency to work more efficiently with digital currencies like bitcoin and Ethereum.

What is a Stablecoin?

Stablecoins are digital assets that have been developed to meet certain requirements. They’re created by distributed, distributed ledger technology (DLT) systems, and used as a digital currency. The goal of the stablecoin is to avoid market fluctuation and to create a stable peg of currency such as US dollar. It is an intermediate digital currency that inter-connect the digital currency to fiat currency. It is a private reserve that can compete with the Federal Reserve and has more flexible monetary policies to help the economy weather the uncertainty of the financial crisis.

How Does the Stablecoin Bill Work?

The detail of the Bill yet needs to prevail. However, the sign of government collaboration is a great way to help cryptocurrency transit into a more institutional setup. The goal is not to prohibit the usage of the stablecoin but rather to avoid abusing the use to harm society. To prevent rug pulls, scams, bankruptcy without protections, and founders running away, the Bill hopes to bring the community together on the right track.

Federal Reserve Updates its CBDC policy soon

By 2020, the Federal Reserve will begin researching “CBDC” or Central Bank Digital Currency and provide an alternative to dollar usage. A way to shift away from traditional monetary debt (limited debt) into digital debt (infinity debt). However, the transition has to be laid out on how the currency's infrastructure is to be implemented and regulations to prevent any potential harm. We are yet to see how the policymakers position themselves in the future money.

Other Banks and Financial Companies Will Be blessed with Crypto Assets

On May 1, 2019, all major U.S. banks will begin offering customers the option to purchase up to an unlimited number of digital assets in the name of a virtual bank account. Customers can create an account and hold various digital assets like Bitcoin and Ethereum. The new platform will be managed by a third-party, and the funds will be stored in an encrypted digital wallet. Many existing crypto exchanges convert themselves into digital bank. However, the financial downturn in 2022 has been a rough environment to push many crypto businesses out. We are still watching how the market downturn can boost innovation further.


The recent wave of blockchain-based innovations has excited investors and potential customers worldwide. But what are the long-term effects of these developments? Are we really in the era of digital assets? Or are we just witnessing the “first” of many such technologies getting implemented one day? How the policy and regulation will change the crypto industry? There are many unanswered questions, but the future is bright.

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