Ordinary traders began to urgently sell off the Stablecoin, buy up the bitcoin,
as a result of which, the BTC/USD rate literally rushed into space.
Ultimately, she explained, whether the asset is labeled as a Stablecoin or anything else, the SEC will always subject
projects to the same level of scrutiny.
To overcome this hurdle,
Facebook may seek to make GlobalCoin a so-called"Stablecoin," which is linked to the value of a traditional government-issued currency,
The Wall Street Journal suggests.
A new report published today analyzed 40 crypto and Stablecoin projects and found that the
asset type will play a key role in the mainstream adoption of crypto technologies.
The fluctuations of the Stablecoin exchange rate are several orders of magnitude
lower than that of other cryptocurrencies, since their price directly depends on the rate of the real asset.
We are excited to bring the Gemini dollar to market, a Stablecoin that combines the creditworthiness
and price stability of the U.S. dollar with blockchain technology and the oversight of the NYDFS.”.
According to the paper, Facebook's global Stablecoin, dubbed“libra,” will operate on the native and scalable Libra blockchain,
and be backed by a reserve of assets ostensibly“designed to give it intrinsic value” and mitigate volatility fluctuations.
As Cointelegraph reported in December last year,
the United States-based Stablecoin project Basis has officially stated that it
will close operations and refund investors after they confirmed that they couldn't avoid a security classification for their secondary token.