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The techno-anarchists of crypto were dead wrong

Andy Mukherjee for Bloomberg
Andy Mukherjee for Bloomberg10/22/2021 11:49 AM GMT+08  • 4 min read
The techno-anarchists of crypto were dead wrong
Stablecoins are here to stay, says Bloomberg's Mukherjee.
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The techno-anarchist pioneers of cryptocurrencies believed they were creating a new form of unregulated, decentralised money. They couldn’t have been more wrong.

While Bitcoin and Ethereum did succeed in spawning a highly speculative alternative asset class that has come to enjoy wider use and popularity, the innovation that’s really set to challenge fiat cash is stablecoin: the less turbulent corridor through which investors reach volatile digital tokens.

Far from being an alternative to state-issued money, the likes of Tether and USD Coin are pegged to government-backed legal tender such as the dollar. These tokens allow investors to switch into and out of their cryptocurrency assets without having to interact each time with a bank wary of unwittingly enabling money-laundering, terror financing, child pornography or extortion hacking. Indeed, blockchain-based clones of national currencies started becoming popular as crypto exchanges took off in late 2017; many of them did not have licences to accept fiat money.

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