Broker Kanack Code said in a research report Wednesday that the broader promise of cryptocurrencies whose value is tied to another asset, and cryptocurrencies whose value is tied to another asset, have remained elusive to date. He said passing the genius law in the US Senate would change everything.
The laws whose full name guide and establish national innovation for the US Stablecoins Act are designed to return Stablecoin Innovation to US Senate support. Given the bipartisan support of the bill, the stubcoin law in the US is pretty much here.
“Stablecoins represent the true layer of money that will be added to the internet. They are essentially programmable money,” Canaccord says.
Analyst led by Joseph Vafy writes that “compliant, ridiculous stubcoins are effectively recognized by the US government as the same,” so “the promise to find a use case as a ridiculous contrast pair can be on the horizon.”
The value of a Stablecoin is associated with assets such as US dollars and gold. They play a major role in the cryptocurrency market, particularly providing payment infrastructure, and are also used to transfer money internationally.
Canaccord considers Stablecoins to “provide true productivity in money speed and corporate working capital balances.” Stablecoins allow you to process transactions instantly, making it much cheaper than traditional routes.
According to Canaccord, the compliant stubcoins could be a key source of demand for the short-term US Treasury, given the full support requirement.
“A genius-compliant stubcoin could become a driver of dollarizing the global economy as its usage spreads across countries,” the author writes.
The adoption of Stablecoin will help advance the broader crypto industry, the report added.
read more: When the genius act is passed, the stubcoin evolves into “Internet Money Rail”: Bernstein
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