[Mengkudulangsat]

Sounds like a race to the bottom.

First, there's Tether > We're the only option in town. Then, there's Circle > We're more legit than Tether, we're based in the US. Now, there's the banks > We're more legit than Circle, we're banks!

Eventually, the Fed itself will start issuing stablecoins and out-legitimize everyone else.

[smeej]

When Coinbase and Circle formed the CENTRE Consortium back in 2018, they were extremely clear, at least internally, that they were trying to build what would become FedCoin. They hoped that, because USDC is already designed such that it can be completely controlled by its issuers (they can freeze any wallet at any time), by the time the Fed realized that CBDCs were inevitable, they would just adopt the existing "legitimate" leader rather than trying to roll their own.

[wtmt]

> Eventually, the Fed itself will start issuing stablecoins and out-legitimize everyone else.

That would be a CBDC (Central Bank Digital Currency), which the current administration doesn’t seem to want. One advantage of such a CBDC would be that central banks of other countries could be persuaded to use them (for cross border payments and transfers), whereas a stable coin issued and managed by a group of banks would likely not have this advantage (not saying never though).

[hocuspocus]

I fail to see what a CBDC and/or Fed sanctioned stablecoins would achieve for entities outside the US that need to transact in USD. It would essentially work the same as today under a new name?

The point of a CBDC is government control over an increased share of the money supply. Pretty irrelevant to USD balances held by other central banks.

The point of a stablecoin for an entity with an American banking license is... nothing?

[WinstonSmith84]

> the Fed itself will start issuing stablecoins and out-legitimize everyone else

That's doubtful everyone else will be out-legitimized ... because ultimately the Fed will issue coins they can fully control (freeze, delete, etc. whenever they wish so). That doesn't make holding such money very valuable. A lot of people understanding this concern will favor USDT or similar privacy oriented coins and thus these coins will keep flourishing (however USDC could disappear for this very reason).

[jmclnx]

This, I it has been 17 years since the last big economic crash. I guess the Banks need to make quick $ and cause another crash.

[Maken]

Sounds like a race to the top. The issuer with the highest credibility also has the crypto with the highest credibility.