The use of stablecoins to miss even with clear laws, rules and regulations, so its use is still limited, it is outside of the cryptomarkt, says the European Central Bank (ECB), in a new report.
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The european Central Bank on stablecoins
They call it an “occasional paper” on the Twitter, it is clearly an exploration of a new area. In the research project “In search for stability in the crypto-assets: there are stablecoins to the solution?”, the stablecoins into four types of groups.
Just like a “normal” cryptomunt to create a stablecoin using a decentralized ledger for data storage.
The research is described in a unit of digital value, without the attributes of a currency such as the euro or the us dollar. Due to a number of factors, such as the cover of a mainstream currency, like the dollar, the price fluctuation is at a minimum.
Occasional paper: “In search for stability in the crypto-assets – Are stablecoins to the solution? https://t.co/rwrigIfQgx
— The European Central Bank (@ecb) October 29, 2019
Classification of stablecoins
The following chart shows the four classifications are: getokeniseerde funds off-chain-backed stablecoins, with the chain secured stablecoins, and stablecoins is based on an algorithm. The ECB, the 54-stablecoin-projects have been identified, of which 24 are in operation at the market.
The most well-known is the Tether USDT), whose use in China is rising. Of the Tether, there are a number of options: the us dollar, and soon there will also be a link to Chinese yuan (formal known as the renminbi, eds.). From the USDT, it is well known that the coverage is only 74 per cent and not 100 per cent, as was previously promised.
The stored capital in the steady-cryptomunten increases from €1.5 billion ($ 1.7 billion) in the January of 2018, to more than 4.3 billion euros ($ 4.8 billion) in July of 2019.
During the period from January to July, 2019, the monthly volume of transactions of €13.5 billion. Getokeniseerde funds are 97% of the market.
Source: European system of Central banks (PDF).
The uncertainties and risks of
The researchers stress that, to the stablecoin-projects-uncertainties and risks occur. For example, the governance for some stablecoins unclear as to how the value is created, and which actors are involved in the consensus?
A further risk is the lack of oversight by the regulatory authorities, which makes the traditional financial institutions, provisional waivers of stablecoin. Without supervision, the use of a stablecoin out of the cryptomarkt is very limited, so, the central bank).
Read also: Alibaba-and-Tencent (WeChat) go to the central cryptomunt in China to test
Libra?
At a meeting of the Finance ministers called on the German mep Jens Weidmann keep an eye on stablecoins, reported Reuters at the time.
He did, by implication, the initiative by Facebook for its own cryptomunt Balance to the other with ease. “There’s no reason to be alarmed, but we have to be vigilant and to know what is the nature of stablecoins time.
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