The dollar also arrived on the blockchain
How the GENIUS Act could change the future of stablecoins
In past articles we talked about how a token can emerge from an event and become
Something that has value both inside and outside a community. We even mentioned that token It could be exchanged for currencies like USDC or USDT. But what are these, really?
Coins, and why did the United States decide to create a law for them? They are known as
Stablecoins, or stable currencies, operate on a simple principle. Even though Bitcoin's price fluctuates so much, a stablecoin like USDC aims to maintain a value close to one dollar.
Simply put, it's like having a digital dollar that you can move using blockchain.
This is where the GENIUS Act comes in, a law created in the United States to establish stricter rules.
Clear rules on how these currencies should operate. Among those rules is something good.
Importantly, authorized companies that create stablecoins must maintain reserves that
back the coins they have in circulation. In simpler terms, if there are a million
for dollars in stablecoins, there must be a backing equivalent to that value allowed by law.
They will also have to report on these reserves so that people can know what exists, what is real, and what is behind the currency. This may seem like just another regulation, but it could represent a huge shift for blockchain. Having clearer rules can make banks, businesses, and individuals feel safer and more confident using cryptocurrencies to make payments or send value to others through the blockchain.
For us in Puerto Rico, this is also important because we use the US dollar. We're seeing how, little by little, that same dollar we know is starting to have a version that's moving into the future. The question then is no longer just how much a cryptocurrency can rise. Now we have to ask ourselves something different. What would happen if sending a dollar via blockchain were as normal as sending it via ATH Móvil? Because perhaps one of the biggest transformations of blockchain won't come from replacing the money we know, but from changing the way we use it.
Tío Crypto
Lucas R. Bulgalá Martínez
Blockchain developer, investor, and crypto analyst
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