Stablecoins are the “eighth miracle” of the crypto world!
Their future promises to be interesting, however, you need to understand that intervention states can be very dangerous, A decentralization can lead to the opposite effect - strengthening centralization.
👉 How does the state influence stablecoins?
Let's consider prospects using the example of the French bank Societe Generale-Forge, which launched its first official stablecoin EUR CoinVertible on Ethereum. The token is in open blockchain and anyone can see its code .
Here's what's interesting there:
🔸 Transaction confirmation function — the bank needs to receive confirmation from the client to carry out the transaction, which will be completed only after the bank will approve this is the very confirmation. The funny thing is that for all this you have to carry out additional transactions on Ethereum. Thus, they may be exposed DDOS attacks and turn decentralization into centralization.
🔸 Combustion function - allows you to bank with one click burn all your money. Most likely, the bank will use this function to control over the money supply, so the bank will not have to issue bonds. This feature may help solve the problem with inflation.
🔸 Excess balance - means that clients will have limit for storing tokens. This will force the client to constantly spend money, thereby stimulating the country's economy.
🔸 Withdrawal of funds - the bank can take clients’ money and send them to yourself. And if the client "inconvenient» to the state, the bank simply will pick up all his money.
👉 What's the result?
Instead of unregulated decentralized assets are trying to give clients regulated, fully controlled bank money, which completely ruins everything essence cryptocurrency.
Based thread : Evaneskate
