Cryptocurrency Information Bureau News: Groundbreaking Stablecoin Bill Passes the US Senate! How will stricter regulations affect cryptocurrencies? #Stablecoin #GENIUSAct #Cryptocurrency
Video explanation
New rules for money established in the US? What are "Stablecoins" and the "GENIUS Act"?
Hello everyone! I'm John, your guide to the digital world. Recently, when watching the news, you often hear words like "digital currency" and "blockchain." You might think they sound complicated, but today I'd like to talk about the "blockchain," which is one of the most popular digital currencies.StablecoinsI would like to explain the new movements in the United States regarding this in as easy-to-understand a manner as possible!
What is a stable coin? Don't worry if you've never heard of it before!
Have you ever heard of "Stablecoin"? You might be wondering, "What is that? Is it delicious?" (laughs) But it's actually a new type of money that could make our lives more convenient.
"Stable" means "stable" in English. As the name suggests, stable coins areDigital money with stable valueFor example, some cryptocurrencies such as Bitcoin (cryptocurrency – a special type of financial asset exchanged over the internet) can go up and down in price dramatically. Just like a roller coaster!
However, stable coins are different. In many cases, the value of a coin is the same as what we normally use, such as "1 coin = 1 US dollar" or "1 coin = 100 yen."Its value is linked to legal tender (money issued by a country, such as the US dollar or the Japanese yen).So, one of its great features is that you can use it without worrying about big price fluctuations.
You may be wondering, "But how do they stabilize the value?" One of the mechanisms is "Fiat currency collateral type" is a type of currency that is backed by real money. The company that issues the stablecoin keeps real US dollars or Japanese yen in the same amount as the coins they issue in a financial institution such as a bank. By doing so, they are guaranteeing that "this digital coin is backed by real money!" This makes it easy to use with peace of mind.
It is hoped that this will make things like shopping on the Internet and sending money to family and friends living overseas faster, cheaper, and easier.
Passed in the US! What is the "GENIUS Act"?
Now, regarding such convenient stablecoins, there was big news in the United States recently.Senate (one of the places where important rules of the country are decided)so,"GENIUS Law" A law regarding stablecoins has been passed!
This "GENIUS Act" has a clever name, doesn't it? Its official name is the long "Guiding and Establishing National Innovation for US Stablecoins Act", which means something like "Act to guide and establish national innovation regarding stablecoins in the United States". This law is aimed at stablecoins (legal tender-collateralized stablecoins), whose value is backed by legal tender such as the US dollar,The first proper rules (framework – proper regulations) in the entire United States.We aim to create.
Until now, there have been few unified national rules for stable coins, and there have been concerns such as, "Is it really safe?" and "What will happen if something goes wrong?" However, with the creation of the GENIUS Act, things like the following will become clearer.
- What conditions must a company meet to be able to issue a stablecoin?
- What information must be disclosed to protect users?
- What measures are needed to prevent money from being used for bad purposes, such as money laundering?
As these points become clearer, people will be able to use stablecoins with greater confidence.
And what's great about this law is thatIt received bipartisan support.This means that people from different political parties, who usually have different political opinions, cooperated and agreed that "this law is necessary for the future of stable coins!" This is proof that creating rules to properly utilize stable coins in society is considered important for the whole of America. This bill was proposed by Senators Hagerty, Scott, Gillibrand, and Lummis, and was passed with a lot of support (68 votes in favor and 30 votes against).
How does this law relate to us?
Some of you may be thinking, "Oh, so a new law has been enacted in America. But it doesn't really have much to do with people like us who live in Japan, does it?" However, in fact, this law has quite a big meaning.
First, the creation of solid rules will encourage interest in stablecoin technology.Greatly improved reliabilityThis can have the following positive effects:
- For those who use it:People will be able to think, "This digital currency is safe because it is properly managed according to rules approved by the country." It may become possible to use it more easily and safely.
- For service providers:It will become clear what rules must be followed in order to provide new services using stablecoins, making it easier to develop new businesses and useful apps.
For example, it may make cross-border monetary transactions smoother and give rise to new financial services that have never existed before.Innovation (new technologies and ideas that make the world more convenient and create new value)This will be the catalyst for acceleration.
And when economic powerhouses like the United States establish rules in these advanced fields, other countries often take action, saying, "Let's make stablecoin rules in our country too!" Discussions about stablecoins have already begun in Japan, but movements like the GENIUS Act in the United States will surely influence rule-making in Japan as well. In the future, there may come a day when stablecoins become more familiar and safer around the world as one of the "ordinary currencies."
In other words, the GENIUS Act is a so-called "measure to make stablecoin technology available to everyone with peace of mind.Traffic Control" By properly managing this traffic, we can say that an important foundation has been laid for the development of future digital financial services that will be safer and more convenient.
John's comment
This news makes us feel that digital money is not something from the distant future, but is already right on our doorstep. At first, new technology can be a little scary because we don't really understand it, but by having the government create proper rules like this and put things in place to ensure safe use, we can all feel more secure and enjoy the convenience it brings, which I think is a great thing. I'm really looking forward to seeing what new services will emerge and how they will change our lives!
This article is based on the following original articles and is summarized from the author's perspective:
US Senate Passes Stablecoin Bill The GENIUS Act