• Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA
Sunday, August 14, 2022
Online Crypto College
Advertisement
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
  • Blockchain
  • Regulation
  • Trading
  • Learn Crypto
    • Free Crypto Training
    • iCoinPro Crypto Trading
No Result
View All Result
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
  • Blockchain
  • Regulation
  • Trading
  • Learn Crypto
    • Free Crypto Training
    • iCoinPro Crypto Trading
No Result
View All Result
Online Crypto College
No Result
View All Result

Stablecoins to be Issued by Licensed Banks and Trust Companies in New Japanese Law

June 3, 2022
in Blockchain
Reading Time: 4 mins read
A A
ShareShareShareShareShare

In a move to protect investors, Japan’s parliament has passed a bill classifying stablecoins as digital money that must be connected to the nation’s currency, yen, or another legal tender. 

Related articles

Tornado Cash Developer Arrested by Dutch Authorities

August 14, 2022

KuCoin Labs Rolls Out Incubation Program with Univers Network to Boost Web3 Exploration

August 13, 2022

The legal framework, which is expected to be rolled out in a year, also stipulates that holders have the right to redeem stablecoins at face value. Per the announcement:

“The legal definition effectively means stablecoins can only be issued by licensed banks, registered money transfer agents and trust companies. The legislation doesn’t address existing asset-backed stablecoins from overseas issuers like Tether or their algorithmic counterparts.”

It seems it’s a race against time for global governments to put up guardrails in the stablecoin arena following the shocking collapse of TerraUSD (UST), which triggered the loss of approximately $60 billion.

 

Things started going haywire after the algorithmic UST stablecoin on the Terra network experienced a de-pegging from its US Dollar benchmark.

 

Some experts like Ransu Salovaara, the CEO of DeFi platform Likvidi, stated that the algorithmic nature of UST could have triggered the crash. 

 

This explains why governments are looking at cracking the whip in the stablecoin space because tokens in this sector have a market value of around $161 billion, according to CoinGecko.

 

Tether (USDT) tops the stablecoin list, followed by Circle’s USD Coin (USDC) and Binance USD (BUSD).

 

Is it the end of the algorithmic stablecoin era?

 

Speaking to CNBC during the World Economic Forum in Davos, Reeve Collins noted that it was both unfortunate and not a surprise that money was lost through the algorithmic UST stablecoin because smart people were trying to peg it to the dollar. 

 

The Tether co-founder added:

“A lot of people pulled out their money in the last few months because they realized that it wasn’t sustainable. So that crash kind of had a cascade effect. And it will probably be the end of most algorithmic stablecoins.”

With algorithmic-based stablecoins being at the experimental stage, volatility becomes inevitable. 

 

Anshul Dhir, the co-founder, and COO of EasyFi Network pointed out:

“Experimental algorithmic stable coins are volatile, and it is believed that it will take some time to find a good algorithmic stable coin. Over a period of time, such programmable money should be possible, which ultimately is the end goal of decentralized finance.”

Therefore, time will tell how things turn out for algorithmic stablecoins moving forward. 

Image source: Shutterstock

Credit: Source link

ShareTweetSendPinShare
Previous Post

Large Investors Withdrew Terra Positions Early on, Jump Crypto Reveals

Next Post

Bulgarian Chief Prosecutor Accused of Willfully Failing to Act Against Onecoin Fraudsters – Regulation Bitcoin News

Related Posts

Tornado Cash Developer Arrested by Dutch Authorities

August 14, 2022

The Dutch Fiscal Information and Investigation Service (FIOD) has arrested a suspect in connections to money laundering crimes on the...

KuCoin Labs Rolls Out Incubation Program with Univers Network to Boost Web3 Exploration

August 13, 2022

KuCoin Labs, the incubation and investment arm of crypto exchange KuCoin, has launched an incubation program with Univers Network to...

Russia’s Central Bank Plans to Launch its CBDC-Digital Ruble across all Banks in 2024

August 13, 2022

The Bank of Russia launched a digital ruble experiment in 2022 to explore business models and innovative use cases for...

CFTC Sues Ohio Resident Rathnakishore Giri Fraudster Involving in a $12M Ponzi Scheme

August 13, 2022

The U.S. Commodity Futures Trading Commission (CFTC) has charged Ohio resident cryptocurrency scammer Rathnakishore Giri and his company with illegally...

Ethereum Founder Vitalik Buterin Speculates the Merge Will Happen on September 15

August 13, 2022

Vitalik Buterin, Ethereum’s co-founder, has hinted that the much-anticipated merge might occur around September 15. The transition from a proof-of-work...

Load More
Next Post

Bulgarian Chief Prosecutor Accused of Willfully Failing to Act Against Onecoin Fraudsters – Regulation Bitcoin News

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This Brazilian Fintech Is Bringing Crypto Trading To 30 million People

August 12, 2022

The market is ripe with signs of capitulation, but Bitcoin is holding its ground

August 8, 2022

Binance to cease off-chain transfers for WazirX

August 9, 2022

Perspectives of Global Cryptocurrency Regulation

August 12, 2022

CEO Jeremy Allaire believes Circle’s big moment has come as he prepares for long-delayed public listing

August 12, 2022

About Us

This is an online news portal that aims to provide the latest Crypto news, Altcoins, blockchain, regulations and much more stuff like that around the world. Feel free to get in touch with us!

What’s New Here!

  • Hacktivist group Anonymous promises to investigate BAYC
  • Binance Executive Says Retail Investors Flocking to Bitcoin (BTC) and Crypto Amid Rampant Inflation: Report
  • Bitcoin hits $25K as bearish voices call BTC price ‘double top’

Newsletter

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2022 - OnlineCryptoCollege.com - All rights reserved!

No Result
View All Result
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
  • Blockchain
  • Regulation
  • Trading
  • Learn Crypto
    • Free Crypto Training
    • iCoinPro Crypto Trading

© 2018 JNews by Jegtheme.

  • bitcoinBitcoin(BTC)$24,273.00-1.29%
  • ethereumEthereum(ETH)$1,923.54-3.90%
  • tetherTether(USDT)$1.000.13%
  • usd-coinUSD Coin(USDC)$1.000.15%
  • binancecoinBNB(BNB)$318.13-3.21%
  • cardanoCardano(ADA)$0.571.60%
  • rippleXRP(XRP)$0.378639-0.92%
  • Binance USDBinance USD(BUSD)$1.000.06%
  • SolanaSolana(SOL)$44.87-4.14%
  • dogecoinDogecoin(DOGE)$0.0792366.87%
  • polkadotPolkadot(DOT)$8.93-6.06%
  • Shiba InuShiba Inu(SHIB)$0.00001626.97%
  • Lido Staked EtherLido Staked Ether(STETH)$1,872.36-4.02%
  • AvalancheAvalanche(AVAX)$28.12-4.42%
  • matic-networkPolygon(MATIC)$1.00-2.89%
  • daiDai(DAI)$1.000.19%
  • tronTRON(TRX)$0.0704950.21%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$24,272.00-1.23%
  • ethereum-classicEthereum Classic(ETC)$41.26-7.46%
  • OKBOKB(OKB)$21.63-3.73%
  • leo-tokenLEO Token(LEO)$5.114.39%
  • litecoinLitecoin(LTC)$63.26-2.46%
  • NEAR ProtocolNEAR Protocol(NEAR)$5.60-5.55%
  • FTXFTX(FTT)$30.86-2.46%
  • chainlinkChainlink(LINK)$8.78-4.71%
  • UniswapUniswap(UNI)$8.86-2.91%
  • CronosCronos(CRO)$0.152290-2.21%
  • cosmosCosmos Hub(ATOM)$11.62-3.91%
  • stellarStellar(XLM)$0.125448-1.73%
  • moneroMonero(XMR)$164.26-2.10%
  • FlowFlow(FLOW)$2.86-3.90%
  • bitcoin-cashBitcoin Cash(BCH)$139.17-3.91%
  • algorandAlgorand(ALGO)$0.364098-2.26%
  • vechainVeChain(VET)$0.032319-2.47%
  • filecoinFilecoin(FIL)$8.08-5.27%
  • Internet ComputerInternet Computer(ICP)$7.96-3.78%
  • ApeCoinApeCoin(APE)$6.43-6.98%
  • decentralandDecentraland(MANA)$1.07-1.19%
  • ChainChain(XCN)$0.086356-0.94%
  • The SandboxThe Sandbox(SAND)$1.34-0.74%
  • HederaHedera(HBAR)$0.078818-4.91%
  • tezosTezos(XTZ)$1.87-2.91%
  • Axie InfinityAxie Infinity(AXS)$18.56-5.02%
  • QuantQuant(QNT)$118.12-7.33%
  • theta-tokenTheta Network(THETA)$1.53-5.05%
  • Lido DAOLido DAO(LDO)$2.70-9.80%
  • AaveAave(AAVE)$107.14-3.83%
  • Celsius NetworkCelsius Network(CEL)$3.43-10.21%
  • ElrondElrond(EGLD)$62.60-5.16%
  • FraxFrax(FRAX)$0.99-1.46%