There is a lot of fear, uncertainty, and doubt (FUD) around USDC right now, according to a member of the cryptocurrency industry. However, as the FUD spreads, Jason reminds everyone that it is important to remember that BNY Mellon is their custodian, BlackRock manages reserves, Visa settles transactions in USDC, and it is 100% backed by cash and treasuries.
https://twitter.com/JasonYanowitz/status/1625551974107168768
Additionally, it is audited by Deloitte, and annual audits are filed with the SEC, leading Jason to assert that the FUD is exaggerated.
Binance US pauses withdrawals on ETH chain
This comes after another participant in the cryptocurrency space reported that Binance US had halted withdrawals on the ETH chain due to a temporary shortage. According to him, the Company had gone for 9 hours without handling any transactions. This news comes after Binance US halted withdrawals on the ETH chain.
After a few hours, the company restarted these activities after receiving $5 million from circle, however, it is unclear whether or not this was a rebalancing throughout the networks.
🚨BINANCE US HAS “PAUSED” $USDC WITHDRAWALS ON ETH CHAIN DUE TO A “TEMPORARY SHORTAGE.”
LAST WITHDRAWAL WAS PROCESSED ~9 HRS AGO. DOES IT REALLY TAKE THAT LONG TO MOVE FUNDS CROSS-CHAIN? pic.twitter.com/j9CQ40GGUP
— DIRTY BUBBLE MEDIA: GOOD LUCK, GOOD BYE. (@MikeBurgersburg) February 15, 2023
What is the likely impact of a stablecoin ban on cryptomarkets?
The cryptocurrency markets might be significantly impacted if governing bodies decided to outlaw stablecoins on the grounds that the digital assets meet the definition of security. Stablecoins offer a way for traders to transfer money between exchanges without utilizing the usual banking channels, which is one of the primary reasons why they are so popular in the cryptocurrency trading industry. A prohibition on stablecoins may make the cryptocurrency markets more volatile, cut down on liquidity, and raise the level of regulatory scrutiny placed on other cryptocurrencies. On the other hand, this may also provide a chance for innovation in the sector.
The abrupt absence of stablecoins may result in a significant price decline, which in turn may set off a wider-scale selling pressure in other cryptocurrencies. Additionally, it may decrease liquidity, which would make it more difficult for traders to acquire and sell bitcoins. On the other side, a prohibition may inspire additional innovation in the cryptocurrency field, such as the creation of new stablecoins or other cryptocurrencies that meet the worries of regulators. In the end, the repercussions of a prohibition on stablecoins would be determined by the particulars of the prohibition as well as the manner in which it was carried out.
