Australia – A bill to control stablecoins and the digital yuan

Australia – A bill to control stablecoins and the digital yuan

The β€œclassic” cryptocurrencies have almost become a side issue for regulators. For the real digital spine they currently care about takes the form of the many stablecoins taking hold in this nascent economy. With current giants like USDT and Tether Where Circle’s USDC whose strike force ends up shaking the very principle of decentralization of this ecosystem. To the point of seeing numerous bills attempting to control its circulation and development. But also an Australian senator proposing this type of regulation storing them alongside the Chinese digital yuan…

The emergence of stablecoins has become a central part of the digital economy built around cryptocurrencies. First of all following the historic collapse of its UST version, bringing with it 40 billion losses and the almost total disappearance of the Terra ecosystem (now Terra Classic – LUNC). But also with the proliferation of these offers initiated from all sides by networks like Tron (TRX) or iconic protocols like Aave (AAVE).

A reality that seems to frighten the current holders of the world monetary authority. Because these private and increasingly decentralized offers are direct competitors to the currencies on which they are based – mainly the dollar USD. While often offering more efficient and faster services, mainly when it comes to crossing a border. Reason why an Australian senator has just drafted a bill to try to stem this surgealong with the development of the Chinese digital yuan.

Australia – Regulations for stablecoins

A few weeks ago, the Australian government decided to break its silence on the subject of cryptocurrencies. A decision that follows an almost total lack of communication in the field, driven by many hesitations about the way forward. And obviously, the trend is towards alignment with policies implemented around the world. With, in this case, a desire to regulate the stablecoin sectorbut also – and probably in relation to this – cryptocurrency exchange operations.

All this with the help of a bill recently drafted by the Liberal senator Andrew Bragg, which attempts to remedy, in its words, the “inaction” of the previous government. But sometimes lack of interest isn’t necessarily such a bad thing. Because in this case it boils down to put Australia in β€œthe rhythm of the global race to regulate digital assets. Β» And the general trend in the field is anything but permissive…

Stablecoin and digital yuan – A strange amalgamation

And in fact, it is mainly about controlling the stablecoin market. That by requiring their issuers to hold Australian or foreign currency ‘in reserve at an Australian bank’. With frequent reporting on the status and progress of these critical security assets. This is to avoid the risk of insolvency that has plagued the USDT version of Tether for years.

All this accompanied by a rather surreal mention of the digital yuan, which suggests the degree of knowledge of this senator in the field. While specifying that the latter must be closely controlled, disclosing the identity of the β€œe-Yuan enablers in Australia”. Because, and there he is absolutely right, it is β€œthe very first CBDC published by a central bank of a major economy. ” But nothing to do near or far with a stablecoin in the cryptocurrency sector!

Choosing which stablecoin to use can quickly become complicated. A greatly simplified puzzle on the FTX platform which registers all these assets under the single acronym β€œUSD” in order to simplify their use. This is why you should not hesitate to register as soon as possible!

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