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The Urgent Need for Regulatory Clarity on Stablecoins
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The Urgent Need for Regulatory Clarity on Stablecoins

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Asset-backed stablecoins are digital currencies which might be issued in opposition to conventional fiat currencies held on a 1:1 peg. In principle, one U.S.-dollar-backed stablecoin ought to be equal to at least one U.S. greenback. However, as we’ve seen within the case of tether, this isn’t all the time the case. In reality, many fashionable stablecoins are backed by an analogous mixture of money and business paper, which is unsecured, short-term debt issued by corporations to satisfy their monetary obligations.

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