The federal reserve just said we won’t need cryptocurrency by September, the government is making their own.
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The Federal Reserve chairman just said we don’t need Bitcoin, we don’t need Ethereum, all these cryptocurrencies are failed payment systems. They also said stable coins need to be regulated, the government is working on their own version and we will know more by September. There’s a lot to unpack there so I want to break it down and explain what all that means for the future of money, cryptocurrency and stable coins.
WHAT IS A CBDC?
Central bank digital currency. The government is working on their own, and they are working on regulating the stable coin market.
WHY DOES THE GOVERNMENT WANT TO CREATE FED COIN?
Our current payment system is not digital. When we send money to each other, it happens in 3 phases: phase 1 is called the execution phase between buyers and sellers, then trades go through clearing which is phase 2 where those transactions are then recorded to a ledger, followed by phase 3 which is the actual settlement where we exchange money. This means we can’t send money on the weekends, and we get problems like Robinhood shutting down trades.
WHAT DID THE FED SAY ABOUT BITCOIN?
Jerome Powell said cryptocurrencies are failed payment systems but stablecoins need to be regulated. There are upsides for creating a stablecoin like instant payments, but there are huge downsides and risks.
WHAT ARE THE RISKS?
85% of central banks around the world are now considering creating their own stable coin pegged to their native currency. If the Fed is papa bank then banks like Citi, Chase, US Bank are all teenagers of the Fed and they don’t behave.
Stablecoins are not currently regulated and if we let banks integrate them into their financial system, we would have a lot of unregulated banking which would lead to problems like Wells Fargo (creating millions of accounts, credit cards, predatory lending, etc.) The Fed wants oversight.
WHAT DOES THE GOVERNMENT WANT NOW?
The government wants the CBDC and they want regulation fast.
HOW DOES THIS AFFECT BITCOIN AND CRYPTO?
If Jerome Powell and the fed decide to end stable coins or regulate them in a way that makes them useless, then that would be very bad news. No one knows how they’re going to regulate it, maybe they’ll allow current stable coins to exist or maybe they won’t. There are pros and cons.
Pros:
This could be a good thing in rebuilding the market because it would give a lot more stability to the crypto markets. People would trust crypto more because they feel the government is helping guide it. And with the new confidence we could finally have our ETFs
Downside:
The downside is that it would give the government that much more power and control over money because that will be how we’ll phase out cash and there’s going to be a lot less privacy.
3-5 YEAR PREDICTION:
Tech companies will create their own stable coins (Facebook is working on one now called Diem) this is before the government can create theirs because corporations always move faster than the government. When they do, we will see more stability in the market, we’ll have even more liquidity especially if other companies decide to compete with Facebook, companies like Apple or maybe even Tesla.
At which point banks may start accepting these stable coins as a means of exchange. At which point the Fed will start to get really worried and they’ll be forced to regulate or release their own “superior” version.
At which point other countries will create their stable coins to compete with the US, countries like China and the digital Yuan, Russia with the crypto Ruble, the UK with the crypto pound and on and on which will create even more on and off ramps for people to get into crypto space and people that are already invested in cryptocurrencies will build a significant amount of wealth in the next 3-5 years if they hold and don’t sell.
*None of this is meant to be construed as investment advice, it’s for entertainment purposes only. Links above include affiliate commission or referrals. I’m part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.
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in general the government wants to ends not only stablecoins but all the cryptocurrency 🙁
Andrei stablecoins is very interesting topic, can you also make a review about the most popular stablecoin – USDT? I think it should be interesting to hear your thoughts and ideas
Andrei Jikh watching this thinking plz make another updatw on this (I have USDC in celsius mnmm pulling out)? Lol… wohaa appiffany. You could do what meet kevin did and make follow up videos on the SEC regulation for Stablecoins.
I know celsius recieved cease and disist letters…?
Need your wisdom young padawan!
DudeI Talk about Crypto IRA/401K.
I assure you that they will not be able to handle it. USD will exist as much as BTC.
They obviously won't manage to bring stablecoins down, but surely will try. Also, some good news are here: the lawsuit against Tether has been dropped. It's been years of constant FUD attacks on usdt, still unsuccessful
This is complete nonsense, because the very idea of creating cryptocurrencies was to be independent from the state and from third parties. That I prefer the government coin or USDT? The answer is obvious
I don't believe that they will be able to do this, so I will continue to use tether.
Regulate means to keep you poor. If they do this, we protest.
The government has failed with btc, so you should not worry about usdt and other stablecoins.
Lmao, good luck to our government on their attempts. This, honestly, doesn't sound like bad news, just another panic move. Nothing will stop me from using usdt the way I always used it
ending stables is not a good idea
I still can not understand the reason of it
Sounds a bit scary, but won't stop me from using usdt one in a while
I don't think there will be any collapse of the described video. This is an interesting theory, but I don’t think that in the near future such stables as USDT will be threatened by real restrictions. And even if this happens, I don't think they can completely ban stables.
How do they want to stop USDT or other stable coins? They don't have any effective tools for this.
I wouldn't want to have crypto from the government. Tether suits me quite well.
dang. so where are you guys cashing out to by the end of this year? stablecoin, if so wich one – or bank into fiat/bank?
Sounds like everyone needs to get together and take down the government
So basically invest in bitcoin and forget the alts…. naaaa
LOL Not so subtle humor in your predictions
Pump doge to .30 wtf! You u guy so fxckng slow!!!
I guess they forgot that they don't control the crypto market like the fiat market. Will still use USDT over whatever shitty government issue token they come up with.
What is Loki?
They can regulate ,stable coin like usdt usdc busd , but they can't regulate $ust in terra Luna , truly decantralised stable coin
Cash gives you freedom to transact privately. Digitize everything and you will end up paying more in transaction fees and taxes not to mention your every transaction will be tracked.
11:31 ahaahahhahaahaahhahhaah
I learned a lot from your videos…
The FEd is not ending nothing about crypto. They just do not want you to own it Before take off! also Mark of the beast is Crypto..it will be used to track you once cashless!
THEY ARE GONNA USE THEIR CRYPTO TO TRACK EVERY GODDAMN THING WE DO!!!!! THEY WILL TAKE AWAY CASH SO YOU WILL NEVER BE ABLE TO SELL SOMETHING OUT OF YOUR GARAGE FOR CASH WITHOUT REPORTING IT TO THE FEDERAL RESERVE…OR WORSE THE IRS!!!! YOU KNOW THAT PRIVATE BANK RUN BY A BUNCH OF OLD WHITE GUYS???!!! We have got to stop them!!!! The federal reserve is not a FEDERAL entity!!!! They will take our money if they see fit like for instance IF YOU DO NOT GET THE JAB THEY WILL CUT OFF YOUR CRYPTO, IF YOU ARE CONSERVATIVE they can keep you out of the economy!! THEY MUST BE STOPPED!!!! This is NOT GOOD. GET DEMOCRATS OUT OF OFFICE OR WE ARE SCAROOOOD!!!!
The Fed's Achilles heel is "Lawful Money" aka gold/silver/public money.
FED notes = private currency, taxable, unlimited printing.
US notes = public money, only 300 million in circulation, non taxable (31 USC Section 5115).
12 USC Section 411 states you have the option to opt out of using FED Notes and redeem lawful money.
Oh and did I mention that lawful money is non taxable?
you can instagram "lawful_money_golf"
The guy is doing it – the IRS is refunding him all he paid for the year.
You're welcome!
Stop playing with the card, it's so mesmerizing I can't listen to what Powell says
I disliked because of your title.
I actually came just to do that.
Use titles that aren't lies.
these boomers dont know how email works, how the fuck can they regulate crypto
“Who’s that Pokémon “ got me!
MONERO dgaf
Was too distracted by the spectacle card tricks that I didnt hear anything Powell said.
I see that I have good taste, watch your videos , and the same T-Shirts like You.
😀
Let's all just agree that the government(s) are a bunch of boomers, frustrated that the kids are developing their own money and unregulated financial system. I'm all for it!
Dogecoin (pre 2021) is arguably the most stable stable coin.
I hate how they constantly take little quips at crypto as they trail off on their points. It really makes them look stupid not to acknowledge the relevance of these emerging markets.
Thanks!
As much as I like your card tricks, you shouldn't show yourself doing them because its distracting xD
this is so amazing my account was added up with $8,000 payment from Fabulous Hackers, service
Its an easy fix for all of this… min jail sentences when they commit fraud. No plea bargain allowed. 10X penalty awarded to victims for every $1 defrauded. Easy.