Close Menu
fintechbits
  • News
  • AI
  • Acquisitions
  • Trends
  • Insights
  • Rumors
  • Startups
  • finjobsly

Subscribe to Updates

Get the latest news from Fintechbits.

Trending Now

Innovations in Fintech: Revolutionizing Nepal’s Banking Sector

June 8, 2025

How AI Will Transform Your Financial Management in 2025

June 8, 2025

Builder.ai is indebted to spies and advocates for defaming businesses.

June 7, 2025

AI’s Subtle Transformation of Financial Regulations for All

June 7, 2025
Facebook X (Twitter) Instagram
Trending
  • Innovations in Fintech: Revolutionizing Nepal’s Banking Sector
  • How AI Will Transform Your Financial Management in 2025
  • Builder.ai is indebted to spies and advocates for defaming businesses.
  • AI’s Subtle Transformation of Financial Regulations for All
  • Paraphrase the title from the Circle files regarding the IPO for the Bank.
  • Google Search AI Mode now includes data visualization and graphics features.
  • Startup fintech Decentro secures 30 crore INR as Inverse plans a reversal.
  • Decentro raises 30 crore rupees and plans to relocate its headquarters to India
Facebook X (Twitter) Instagram Pinterest Vimeo
fintechbits
  • News

    Fintech Scotland and TSB unveil a new innovation lab initiative.

    June 3, 2025

    OECD Economic Outlook June 2025: The Fintech Executive’s Strategic Playbook

    June 2, 2025

    The impact of the fintech recruitment crisis on job seekers.

    May 28, 2025

    Turkish Fintech Papara Under Investigation for Potential Money Laundering Activities

    May 27, 2025

    The Fintech Agreement aims to secure lower-cost funding from Africa.

    May 26, 2025
  • AI

    How AI Will Transform Your Financial Management in 2025

    June 8, 2025

    Builder.ai is indebted to spies and advocates for defaming businesses.

    June 7, 2025

    AI’s Subtle Transformation of Financial Regulations for All

    June 7, 2025

    Google Search AI Mode now includes data visualization and graphics features.

    June 7, 2025

    AI-driven finance with secure automation and strategic partnerships in Sage Advance

    June 6, 2025
  • Acquisitions

    $200 million IPO SPAC aims for acquisitions in fintech and AI sectors.

    June 1, 2025

    Wealthsimple hires multiple teams to enhance family financial management.

    May 31, 2025

    The HPS of Morocco plans to acquire a Fintech company by 2027, referred to as CEO – TradingView News.

    May 3, 2025

    The Challenges of Implementing Central Bank Digital Currencies (CBDCs)

    April 14, 2025

    Apex Fintech considering the purchase of Bakkt

    April 13, 2025
  • Trends

    Irish fintech sector continues to thrive despite global trends.

    June 4, 2025

    Irish fintech is thriving and surpassing global trends.

    June 3, 2025

    The $2.6 Trillion Revolution: Inside 2025’s Private Credit BoomHow a once-niche asset class is redefining modern finance

    May 21, 2025

    The Transformative Power of Generative AI in Financial Services: Innovation, Implementation, and Impact

    May 16, 2025

    Latin America’s Fintech Sector Poised to Reach 49.58 Billion USD

    May 1, 2025
  • Insights

    Fintech company Wise to relocate its primary listing to New York to attract more investors and enhance its valuation.

    June 5, 2025

    Flexbase purchases fintech company Maza Financial in a $40 million deal.

    June 4, 2025

    Irish Fintech Nomupay secures 35 million euros in investment from SoftBank.

    June 3, 2025

    OECD Economic Outlook June 2025: The Fintech Executive’s Strategic Playbook

    June 2, 2025

    Payments Postglobaux announces that Fintech Acrisure will acquire its payroll unit, Heartland Payroll Solutions, for $1.1 billion in payments.

    May 29, 2025
  • Rumors

    Paraphrase the title from the Circle files regarding the IPO for the Bank.

    June 7, 2025

    Toncoin achieves $1 billion in trading volume as Visa executive joins and Musk speculation grows

    June 4, 2025

    Fintech Firms Poised for Public Offering in 2025

    June 4, 2025

    Sale of Payoneer? Fintend Suspension 2025 Guidance Seeks Advisors

    June 3, 2025

    Grab refutes speculation about losing $7 billion alongside Goto.

    May 30, 2025
  • Startups

    Startup fintech Decentro secures 30 crore INR as Inverse plans a reversal.

    June 6, 2025

    Decentro raises 30 crore rupees and plans to relocate its headquarters to India

    June 6, 2025

    Fintech startup Syfe expands further in Hong Kong following $80 million US funding round.

    June 6, 2025

    Reimagining Nipost Fintech: Shifts and Digital Advancements in Nigeria’s Financial Sector

    June 5, 2025

    Startups shape the future of Fintech at Money20/20 Europe

    June 5, 2025
  • finjobsly
fintechbits
Home » Stablecoins: Financial Stability or the Next Ticking Time Bomb?
Breaking News

Stablecoins: Financial Stability or the Next Ticking Time Bomb?

3 Mins Read
Facebook Twitter Pinterest Telegram LinkedIn Tumblr Email Reddit
A futuristic financial landscape showcasing stablecoins, blockchain networks, and government oversight.
The growing influence of stablecoins raises questions about financial security and regulatory control.
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link

Recently, stablecoins—digital assets linked to traditional currencies such as the US dollar— have increased in popularity, promising the stability of fiat money and the efficiency of cryptocurrencies. The worldwide stablecoin market now holds more than $200 billion in capital at the start of 2025 and keeps growing within the financial system. The quick growth of stablecoins generates different opinions among people who work in politics, economics, and investments about their impact on financial safety versus possible new risks to the system.

GENIUS Act Ensures Stablecoin Oversight

In February 2025 U.S. Senators presented the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act to create standard rules for payment stablecoins. Through this bipartisan law, consumers’ interests require stablecoin issuers to keep equal amounts of reserves, verify financial activities before issuing stablecoins, and report transactions above the specified limit to regulators. A strong framework for crypto companies helps responsible development and keeps American companies and employment available.

The GENIUS Act creates licensing rules that enable both federal and state officials to inspect stablecoin companies. The new system lets government officials supervise digital assets using existing rules while overseeing financial industry growth. Different market players endorse the bill because they think it strikes a proper middle ground between protective measures and helping tech progress.

Financial Stability Risks

People continue to express concerns about possible hazards from stablecoin use in the financial system even after governments try to address the problems. Under Federal Reserve Governor Lisa Cook, the stablecoin system shows structural weaknesses that arise because it depends on external assets. She warned that when people demand to cash out from their stablecoin, they would face distress in selling their supporting assets unless those assets are tied to reserve markets. ​

The collapse of TerraUSD (UST) in 2022 serves as a stark reminder of these risks. UST’s breakdown brought heavy financial damage while bringing closer government review to stablecoin producers. Lawmakers have stepped up their legal efforts against Binance for promoting UST as a safe and regulated digital currency that improves public oversight of cryptocurrencies.

Global Regulatory Momentum

Regulators across the world are creating detailed plans to manage stablecoins. The MiCA standard from the EU became active by December 2024 to set tough cash and trading rules for crypto asset companies. Traditional financial regulation drives current efforts to set standards that control stablecoin use across the world.

America now takes a primary step towards national financial laws with the GENIUS Act policies. Different parties still discuss whether this law protects users from financial risks correctly. People who criticize this change say that entering stablecoins into everyday money systems creates new chances for problems across the entire financial field.

Wrapping Up

The exponential growth of stablecoin technologies requires authorities to conduct stringent regulations because they combine lucrative payment capabilities with expanded financial availability. The next few years will be decisive for deciding whether stablecoins promote economic stability or create unanticipated financial upheaval.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Fintech company Wise to relocate its primary listing to New York to attract more investors and enhance its valuation.

June 5, 2025

Flexbase purchases fintech company Maza Financial in a $40 million deal.

June 4, 2025

Revisions to Qatar’s Integration of Potential Payment Service Innovators for Fintech Companies

June 4, 2025
Leave A Reply Cancel Reply

Latest news

Innovations in Fintech: Revolutionizing Nepal’s Banking Sector

June 8, 2025

How AI Will Transform Your Financial Management in 2025

June 8, 2025

Builder.ai is indebted to spies and advocates for defaming businesses.

June 7, 2025
News
  • AI in Finance (1,242)
  • Breaking News (150)
  • Corporate Acquisitions (63)
  • Industry Trends (171)
  • Jobs Market News (289)
  • Market Insights (181)
  • Market Rumors (236)
  • Regulatory Updates (144)
  • Startup News (810)
  • Technology Innovations (150)
  • X Feed (1)
About US
About US

FintechBits is a blog delivering the latest news and insights in fintech, finance, and technology. We cover breaking news, market trends, innovations, and expert opinions to keep you informed about the future of finance

Facebook X (Twitter) Instagram Pinterest Reddit TikTok
News
  • AI in Finance (1,242)
  • Breaking News (150)
  • Corporate Acquisitions (63)
  • Industry Trends (171)
  • Jobs Market News (289)
  • Market Insights (181)
  • Market Rumors (236)
  • Regulatory Updates (144)
  • Startup News (810)
  • Technology Innovations (150)
  • X Feed (1)
Happening Now

November 28, 2024

“ Intentionally collaborative ”: how the Rotman school of U of T leads Innovation Fintech

February 6, 2025

‘1957 Ventures’ to Drive FinTech Innovation in Saudi Arabia

September 10, 2024
  • About FintechBits
  • Advertise With us
  • Contact us
  • Disclaimer
  • Privacy Policy
  • Terms and services
  • BUY OUR EBOOK GUIDE
© 2025 Designed by Fintechbits

Type above and press Enter to search. Press Esc to cancel.