According to Moody's analysts, the decoupling of USD Coin from the US dollar could harm the stablecoin industry, which has been growing rapidly in recent years.
Stablecoins are cryptocurrencies backed by real assets such as dollars or gold. They were created to solve the problem of high volatility in traditional cryptocurrencies such as Bitcoin.
Stablecoins such as USDC and USDT were created to provide crypto investors with a way to maintain the price stability of their assets in the face of high cryptocurrency market volatility. This became possible because stablecoins were tied to fiat currencies such as the US dollar, euro, or yuan.
In addition, stablecoins also provided an easy way to transfer money between different cryptocurrency exchanges without the need to convert cryptocurrencies into fiat money and back. This allowed investors to quickly respond to market changes and easily move their assets between different exchanges.
However, the decoupling of USD Coin from the US dollar could disrupt the stability of stablecoins and lead to stricter regulation. If stablecoins are no longer tied to fiat currencies, they may become more vulnerable to fluctuations in cryptocurrency markets. This could lead to a decrease in trust in stablecoins, which in turn could cause panic among investors and even lead to the collapse of stablecoins.
The growth in the market capitalization of stablecoins in recent years is causing concern among regulators and analysts. They fear that an increase in the number of stablecoins on the market could lead to instability and risk for users. Regulators may try to limit the number of stablecoins on the market to reduce risks for users.
Overall, it can be said that the recent decoupling of USD Coin from the US dollar could make their development difficult in the future. However, even despite this, the stablecoin market continues to grow, and many projects have already found their users and investors.
It is also worth noting that cryptocurrencies in general are a new and dynamic sector of the economy, in which changes and experiments are constantly taking place, which in some cases may lead to negative consequences, but in general, this is an inevitable process of development and innovation.