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Will a fed issued USD stable coin make all other USD stable coins obsolete?

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by COINS NEWS 110 Views

Basically what the title says. If the federal reserve issues an official stable USD crypto, will all other USD stable coins become unneeded and die sooner or later? On one hand you can say: creating a stable coin backed 1:1 by USD will be very easy then, because you can just use the fed USD coin to back it up. But on the other hand: Why would anyone use a different stable USD coin if there is an "official" USD crypto?

Tl;Dr: How will central bank stable coins affect other stable coins? What are your thoughts?

EDIT: Guys I posted this before work and now I'm back and there are like 200 comments, so I can not answer to every one individually. But I already read most of them and here are some general thoughts: - USD is not a stable coin in itself. A stable coin is a cryptocurrency pegged to a fiat currency. USD is a fiat currency. Electronic banking etc. is NOT the same as a cryptocurrency. - I get that it's hard to have trust in the fed. But that trust is required if you use USD (or any stable coin pegged to USD) anyways, right? - I guess much depends on how such a currency would look. If the fed created an actual crypto and not just any virtual currency, meaning a open protocol without central authority, trust in the fed would not really be needed to use that coin. Just like you don't need to trust Satoshi (or even know their identity) to use and trust bitcoin, right?

Anyways thanks for all the input, keep it coming.

submitted by /u/afunkysongaday
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