Guess what? 🎉 President Trump just signed a new law that could change how we use money!
On Friday, U.S. President Donald Trump signed the GENIUS Act, a law that could make certain cryptocurrencies, called stablecoins, a regular part of our daily lives.
But what are stablecoins? 🤔
Stablecoins are special digital coins that are designed to be stable in value. This means they are usually tied to real-world money like the U.S. dollar. So, 1 stablecoin often equals 1 U.S. dollar. This makes them less bouncy in value compared to other cryptocurrencies like Bitcoin.
Why is this important? 💡
This new law means that stablecoins need to be backed by real money or things that can quickly be turned into cash, like U.S. Treasury bills. Plus, the companies that make them have to tell everyone what they have to back up the coins each month.
This is a big win for people who like cryptocurrencies! 🎊 They believe it will help more people, banks, and stores trust and use stablecoins. Imagine being able to send money to a friend on the other side of the world instantly! 🌍
Not everyone is cheering though… 😕
Some people are worried about this new law. They think that if something goes wrong with these stablecoins, it could cause problems for the economy. For example, if a big stablecoin company runs into trouble, it might have to sell a lot of U.S. Treasury bills quickly, which could shake up the financial markets.
Others are concerned that big tech companies might start making their own stablecoins, giving them even more power. They also worry about making sure all the rules to prevent bad things like money laundering are strong enough.
So what’s next? 🚀
With this new law, we might see more people using stablecoins to buy things or send money. The world of digital money is changing fast, and it’s an exciting time to learn more about it! Who knows, maybe one day you’ll be using stablecoins too! 💰
Reference(s):
Trump signs stablecoin law, pushing for crypto's mainstream adoption
cgtn.com
