US is banning Stablecoins 🤯 – Katoch Tubes

Is US banning Stablecoins?

What are Stablecoins?

Stablecoins are the digital representation of US Dollar pegged in a 1:1 ratio. They're used to buy/sell cryptos on different chains

Types of Stablecoins

1. Pegged stablecoins (1:1) 2. Algorithmic stablecoins like UST that runs on algorithm.

What's the news?

Latest crypto framework released by US government has plans to temporary ban Terra  (UST) like stablecoins

The duration of ban

The latest draft would ban the algorithmic stablecoins for two years.

Why this Step?

All thanks to Do Kwon, the founder of algorithmic stablecoin (UST). The crash wiped $40 billion worth of investor's money from the crypto market within days

Will CBDC kill Stablecoins?

CBDC is a digital dollar by US.  It has the potential to kill Stablecoins if they lost 1:1  peg in the near future.

Unstable Stablecoins

Checkout the list of stablecoins losing 1:1 peg this year

Learn more

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