In an almost apocalyptic scenario that the world is in, stablecoins can be the ideal means for distributing, for example, resources to those most in need. The evaluation is from the Head of Business Development LATAM of Transfero Swiss, Julian Lanzadera, in an article published in CointelegraphBR. The executive even cites a proposal in this direction made by a Democratic U.S. Senator, suggesting the use of a “digital dollar” in the package of direct stimulus to the economy by depositing in the account of each U.S. citizen of US$ 1,000.
“It is true that stablecoins can pose risks to the market and consumers in general if poorly managed and structured by ignoring international standards, best practices and recommendations, but in an increasingly globalized and connected world, the potentials that a stablecoin with these characteristics could generate for the general population, especially the neediest population, are quite clear.”, he mentions.
According to him, a topic that has been gaining momentum in times of Covid-19 and global economic recession is the need for a universal minimum/basic income. This would be a possible case of use of the benefit that a global stablecoin could have for the world’s population.
“Have you ever imagined being able to distribute to all citizens of the world or of a given nation state a specific amount of resources to maintain their livelihood with just one click and at a cost of cents? Well, this would be possible with a stablecoin of global acceptance and adoption.”, he says.
IOSCO report points out risks and opportunities of stablecoins
The executive cites a report by IOSCO – International Organization of Securities Comissions, a body that has as members the Securities Commissions of several countries, to support his reasoning. The study discusses how some IOSCO principles and standards would apply in the case of issuing a global stablecoin that functions as a global currency and means of payment, including all of its financial infrastructure, reserve managers, intermediaries parties and other participants who act, jointly or separately, to keep the stablecoin price stable. Very similar to Facebook’s Libra.
Have you ever imagined being able to distribute to all citizens of the world or of a given nation state a specific amount of resources to maintain their livelihood with just one click and at a cost of cents? Well, this would be possible with a stablecoin of global acceptance and adoption.
In the study, IOSCO concludes that mass adoption of a global stablecoin has significant potential to create benefits for market participants including consumers and investors. On the other hand, it can worsen the risks that exist today and create new risks in the financial system. In addition, he recognizes the possibility of replicating financial services and products in the long run that we currently know in a new ecosystem integrated into the infrastructure of a global stablecoin.