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Stablecoins Face Scrutiny as VC Founder Draws Parallels to CBDCs
Stablecoins Face Scrutiny as VC Founder Draws Parallels to CBDCs
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BTCCSquare news:
Jeremy Kranz, founder of Sentinel Global, has labeled stablecoins as "central business digital currencies," highlighting their similarities to central bank digital currencies (CBDCs) in terms of surveillance and control. Stablecoins, which recently surpassed a $300 billion market capitalization, are increasingly under scrutiny for their centralized risks.
Kranz argues that privately-issued stablecoins, despite their corporate backing, can be frozen or surveilled under regulations like the Patriot Act—mirroring the control mechanisms of government-issued CBDCs. The GENIUS stablecoin bill has further fueled concerns about backdoor CBDC regulation, while algorithmic stablecoins remain vulnerable to de-pegging during market volatility.
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