The Rise of Stablecoin In Banking: They Are Used For Reserves
A number of banks are holding USDC as a reserve on their balance sheets. One, Citizens, in Atlanta, had $65 million in stablecoins.
In this video I discuss how payments are lagging but settlement is taking off using stablecoins. We can see HBD starting to make an impact if we start to penetrate different regions of the world.
https://cointelegraph.com/news/fdic-insured-citizens-trust-bank-to-hold-65m-in-usdc-reserves
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USDC will become the official CBDC.
Just as I thought you forgot the speed of transactions using Hive/HBD... you went ahead and mentioned it. Indeed, there are numerous strengths to HBD as a stablecoin. Adoption is a significant factor, but there's instinctively going to be a trust issue since it's not a government-backed currency (i.e. USD). This alone makes adoption of any stablecoin very gradual. ANother issue is that HBD is neither among the first nor the largest stablecoins, which may also put a damper on its growth in usage for along time, even if it's a better option. A population-wide cognitive bias towards earlier and larger stablecoins must be overcome.
Summary:
The video discusses an article from Cointelegraph about USDC being held by banks as part of their reserve, with a focus on a particular bank in Atlanta called Citizens Trust Bank. The speaker touches on stablecoin settlements and the reasons behind the lack of adoption for payments using stablecoins. The conversation shifts towards HBD, a cryptocurrency tied to a blockchain with a growing list of use cases. The speaker highlights the impending release of Ragnarok and the potential for an explosion in the Hive economy. Comparisons are drawn between HBD and established stablecoins like USDC and Tether, emphasizing the community-driven value creation within the Hive ecosystem. The discussion concludes with the promise of a forthcoming article exploring the superiority of blockchain as a monetary system over traditional banking systems.
Detailed Article:
The video delves into the recent trend of banks, specifically FDIC-insured banks like Citizens Trust Bank in Atlanta, holding USDC as part of their reserves. The speaker references a Cointelegraph article highlighting this development and emphasizes the increasing use of stablecoins in the financial services and banking industry for settlements. The mention of stablecoin settlements surpassing traditional payment giants like Visa and MasterCard in transaction volume sheds light on the growing prominence of stablecoins in the financial landscape.
Shifting gears, the conversation moves towards HBD, a cryptocurrency tied to a blockchain with an active community contributing to its growth. The speaker points out the gradual rise in use cases for HBD, both in physical shops and online applications, indicating a potential shift towards broader acceptance and integration. The impending release of Ragnarok, along with the anticipation of tournaments and reward pools, hints at significant developments within the Hive ecosystem.
Comparisons between HBD and established stablecoins like USDC and Tether are drawn, highlighting the unique value proposition of HBD as a community-driven cryptocurrency. The speaker emphasizes the role of the Hive community in building applications that drive utility and adoption for HBD, positioning it as a currency with potential for expansion and real-world usage.
The discussion touches on the superior speed and efficiency of blockchain settlements compared to traditional banking systems, underscoring the transformative potential of blockchain technology in reshaping monetary systems. The speaker hints at an upcoming article exploring the advantages of blockchain as a monetary system over conventional banking methods, setting the stage for a deeper dive into the evolving landscape of digital currencies and financial ecosystems.
In conclusion, the video underscores the importance of community-driven development and utility creation in shaping the future of cryptocurrencies like HBD within the broader financial landscape, hinting at a transformative shift towards decentralized monetary systems driven by blockchain technology.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.