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Terra fell drastically amid the declining value of the global crypto market
Regulators are increasingly worried about the impact of cryptocurrencies in the global economic and financial spheres. After the crypto market fell, they became increasingly aware of the fact that crypto-assets can never be included in the national markets. They are extremely volatile and are part of some of the greatest financial controversies in the current industrial landscape. Recently, the fall of major cryptocurrencies like Bitcoin and Terra has shaken up the global crypto market. TerraUSD, an algorithmic stablecoin, that was meant to be pegged to the US dollar was suddenly de-pegged and erased much of the value of investors’ wealth from the Terra ecosystem. And amid such drastic market conditions, governments like the UK and US are positively willing to bring back the stablecoins and legalize them. Recently, the stablecoins received the Queen’s blessings as the country braced stablecoins for its economy.
Recently, Prince Charles spoke on behalf of the Queen of England at the House of Lords, stating the UK government’s ideas and the willingness to include cryptocurrencies in its economy. His Highness precisely emphasized the government’s initiatives to try and implement cryptocurrencies like several other nations already have. The address included 38 bills that the ministers will sign before the implementation of the law in the following year. But the point behind the ongoing discussion in the industry is that amid the volatile condition of stablecoins like TerraUSD, will it advisable to integrate and regulate stablecoins, or any form of cryptocurrency into an economy?
Stablecoins have now earned the blessings of the Royal Family
Reports demonstrated that the UK Treasury intends to regulate stablecoins across Britain. In Prince Charles’ speech, His Highness also mentioned that the government will introduce new legislation across distinct sectors, including measures that will be aimed to accelerate the economic growth to improve the living standards of the region. The UK policymakers will be incorporating new regulations into the framework to fit cryptocurrencies into the economy.
Experts are worried about what effect it might have on its national economy. But luckily, the government is playing quite cleverly as it has refused to involve algorithmic stablecoins like TerraUSD in its system. The downfall of UST raised red flags all over the crypto community. So, the UK Treasury is only including 1:1 fully-backed stablecoins like Tether or USD Coin. Currently, even the Biden administration has planned to legalize and regulate stablecoins. But what effects will it have on the economy, only time will tell?