“We need to create standards for stablecoins, just like the WWW,” US currency controller says

“We need to create standards for stablecoins, just like the WWW,” US currency controller says

The United States currency controller has made a proposal to create stablecoin standards as well as the “wwwexists for the Internet. Such a proposal could change the way these coins are traded and used by the companies issuing them.

For example, public and decentralized cryptocurrencies like Bitcoin are built on ideals of their own community, based on the vision Satoshi Nakamoto left behind when he created the technology.

After that, several cryptocurrencies appeared in the world that are centralized and follow only what their creators decide. Examples of these creations are stablecoins, coins that use blockchains and are backed by an asset.

The most well-known stablecoins are those issued with a dollar counterpart, such as USDT, BUSD and USDC. These are cryptocurrencies with a daily trading volume in the billions of dollars.

One of its key features is the ability for cryptocurrency exchanges to list stablecoins with cryptocurrency pairs, allowing traders to search for coins with more fixed values ​​when active. So with stablecoins, operations help those who don’t want to convert values ​​to fiat currencies.

In many countries, it is worth noting that stablecoins are already used as a means of payment in commerce. In Argentina, USDT use is growing as the country’s inflation records consecutive records.

“Stablecoins must adhere to a single standard, just like www,” suggests acting US currency controller

Several companies are issuing stablecoins today, such as Circle (USDC), iFinex (USDT) and Binance (BUSD). For example, each stablecoin is issued on its own network, so that they do not talk to each other in their innovations.

But for the acting controller of the US currency, Michael Hsu, everything in this sector should change in the future, in order to meet the standards set by companies, governments, cryptocurrency companies and academics.

Emerging technologies such as AI and stablecoins enable transactions on blockchain-based systems. Stablecoins have no shared standards and are not interoperable. In order for stablecoins to be open and inclusive, I believe a standards-setting initiative similar to that of the IETF and W3C should be established, with representatives from not only crypto/Web3 companies, but academics as well. and the government.

Hsu also said he spoke with Deputy Secretary of Commerce Don Graves where he shared this need for change. He said government agencies such as NIST and OCC are standing by to help create standards for stablecoins.

Press stablecoins

The new talk about the possibility of creating standards for stablecoins made by the OCC member is part of a broad discussion about the cryptocurrency sector.

In this way, stablecoins and DeFi have attracted the attention of regulators, who hope to create regulations for the sector and limit the alleged damage they can do to the traditional financial system.

It is worth remembering that in November 2021 the G20 said stablecoins should not operate without regulation, demonstrating the interest in creating rules and standards for these privately owned cryptocurrencies.

Source: Live Coins