The Fight on "Stable Coins" Supremacy

Hello everyone.Here is Dr.Zeshan with new zeal and zest.Hope so you are enjoying this plate form.It is my 12Th article for you Guys.This time I select best topic for @TheRandomRewarder with new community Cryptocurrency and Blockchain.So Let us come to the topic.

Banks including Central Banks are fearful towards cryptocurrencies because such forms of internet money can become the new money, if they let the situation getting out of control. The best case scenario for them is to have their own blockchain/network, CBDC and total control over their users funds. Hopefully we will never end up in that situation.

The European Central Bank for example is fearful towards Mark Zuckerberg's intention of launching Facebook's own cryptocurrency, the DIEM, having the potential to compete against a future digital EURO. ‘We Must Not Let Zuckerberg Become a Central Bank’ told Dr Stefan Berger, a European People's Party Member of the European Parliament (MEP) in an e-mail to Decrypt.

“Facebook has more than 2 billion users. By introducing their own currency, it could gain the power of a Central Bank overnight. Currencies, however, do not belong in the hands of a private company. At the end of the day, we must not let Zuckerberg become a Central Bank.”
-Dr Stefan Berger source.

For that matter the European Commission’s Markets in Crypto-assets (MiCA) Regulation, would mandate that the ECB “establish uniform rules for crypto-asset service providers and issuers at EU level” through a proposal that might be voted by the European Parliament by September this year turning basically the EU in the most crypto regulated space.

Central Bank of Europe seems to not be that fearful towards Bitcoin and other volatile cryptocurrencies, if not at all, as long as the cash ins and out of such assets is conducted through Europe's national currencies, in this case mostly EUROs. The problem is with stable coins which can become widely used and threaten the sovereignty of the EURO and a future digital EURO.

The situation is pretty clear with Facebook's DIEM. The giant is an over 2 billion users data base that already has its own messaging apps, market place, tons of advertising and the network between its users already created. What happens when 2 billion people will be able to use at ease a Facebook issued stable coin? @Read.Cash @FreelanceForCoins @bitcoin

They will be able to shop online using the DIEM, send fund across continents and countries on minimal fees and use less the national currencies that they've been using so far. The way I see it DIEM will be no different than a digital EURO, but the big difference is who's issuing it.

If the EU will then it's a CBDC, if Zuckerberg does it it's a "people's currency" and the Central Bank of Europe will have almost no control over it. Almost... In both cases we can't talk about decentralized blockchain technology and pure cryptocurrency as none of the above grants decentralization, privacy or transparency.

The most they can benefit their users is an ease of use of this so called digital cash, but at the end of the day, the network is still in their hands, they get to issue the currencies, control the fees, track the users use of such currencies and act as a central authority acts on something that belongs entirely to that entity and not to its users. Pretty much like the cash we use it today.

As a personal opinion, neither options that aim at becoming the money of the future will benefit the average Joe and Marry. The only option for that would be the use of decentralized blockchain technology and cryptocurrencies generated by such systems. Something like BTC, ETH, HIVE, DOGE... etc. The options are almost endless.

The fight will be taken over the supremacy of issuing the future stable coins that the world's inhabitants will use and not over who's regulated Bitcoin more. Once banks and governments and other adjacent potential competitors to those have set up their systems and start rolling them, Bitcoin and other alike cryptos are no longer a threat. All they're interested in is for people like you and I to use their digital shit as we have so far used their cash.

It's about control and power over individuals and nothing more. Bitcoin and decentralized blockchains threaten such powers, and so seems Facebook to be doing... I'm personally not excited about Facebook's DIEM because I'm not a Facebook user, but I see the trend here and it's not an ideal one. What's your take by the way on the whole DIEM situation? @Crypto_Eagle @ShadowOfHarbringer

Personally I don't even think Zuckerberg has created Facebook, but that's a topic for another post.

Thanks for attention,
Dr.Zeshan