Latest news with #GENIUSAct
Hindustan Times
32 minutes ago
- Business
- Hindustan Times
Crypto gets stability with a GENIUS Act
Last month, I met two Lebanese women at a conference overseas. They were accompanying their businessmen husbands. We got talking and I found that they keep their money mostly abroad or in dollars and euros in cash at home. In 2019, the Lebanese government froze bank accounts, effectively locking over $93 billion of citizens' money and making it inaccessible. Therefore, when I read that the US has given stablecoins a formal legal backbone, it seemed that a giant step has been taken in legitimising a particular form of crypto currencies that finally have a use case, especially for people in countries with unstable governments and those with hyper-inflation. Let's get the basics out of the way first. A cryptocurrency is a specific type of digital token that is designed to function as a medium of exchange or store of value using blockchain to record transactions. Bitcoin is the most well-known example. Cryptocurrencies have two major problems. One, there is no underlying asset. Remember that a fiat currency has the promise of the government to honour the value as an underlying asset. Stocks have businesses and bonds have a loan contract as underlying assets with a value. But cryptocurrencies have no asset or promise that gives them value. Two, there are no rules of the game as these have been outside the regulatory gaze. This has encouraged all kinds of frauds to perpetuate. Over half the cryptocurrencies have failed since 2021, with billions of dollars lost by people gambling on a quick return. The emergence of stablecoins over the past few years solved the first problem. A stablecoin is a type of cryptocurrency that has an underlying asset — typically the dollar or a US government bond. The second problem is bad faith actors, like exchanges and issuers of these coins who can either embezzle customer money (like FTX did) or simply not buy the required asset causing an asset liability mismatch in the future. In the absence of road rules, the market has been the Wild West revisited. The GENIUS Act that US President Donald Trump signed into law on July 18, 2025, attempts to put down some rules of the game. It mainly solves for customer protection through three key provisions. One, stablecoin issuers must have a 100% reserve backing with liquid assets (like US dollars or short-term treasuries). Two, they must make monthly public disclosures about their reserves. Three, they are forbidden from making misleading claims that their stablecoins are backed by the US government or are federally insured or are legal tender. A privately issued stablecoin is not a fiat currency. So, what's the use-case? The Lebanese women I met might be among the first to begin using a dollar-backed stablecoin to hold their money because they no longer trust banks in their own country. They might not know it today, but in a year, they will be using some form of a stablecoin to keep their money safe in their home country. Expand this story to countries with weak governance, weak macros, hyper-inflation, dictatorships, and persistent political instability, and you see a huge market for a trusted stablecoin. While distressed-country use of stablecoins will be the first large customer base, a widening ripple will be in international money transfers and remittances. Personal international remittances are a $740 billion a year flow. Business flows are a multiple of this. These are expensive given the global average cost for retail of sending remittances is just over 6% as of March 2025. While this is the average, in some places, the costs can be as high as 20% for small amounts. When the time taken to do the paperwork is included, the costs of using banks and other safe ways to transfer money abroad are very large. A trusted, low-cost stablecoin issuer backed either by the dollar or US government bonds will slowly replace other ways of moving money across borders. Safety, trust and cost will be the three variables that will make regular remitters change over to the use of stablecoins over time. So, will banks lose all this business? I'm going to make some predictions here. I see some banks and other trusted names in global finance using their trust to set up global payment systems based on a stablecoin framework. They will either buy out the existing players — Tether being the largest today — or issue their own coin with their own branding. Banks that are forward looking will do it fast and though it will cut their margins, they will at least still be in the game. I also see the demand for the dollar and US government bonds stabilise over time as the US asset-backed coins gain acceptance reinforcing the dollar-first global payment system. It will be imperative in the first few years that there are no major blowouts of a global stablecoin issuer. What does it mean for you and me? At the moment — nothing. India is not a country that is at risk of hyper-inflation. Nor will private assets be frozen unless there is a drastic change in the political viewpoint where private assets are at risk of being shared for a more 'equal' country. Our use case for stablecoins will be purely cheaper and faster remittances and not as a distress store of value. And even then, the use-case is only after a trusted name has proven its track record over time. I would not rush into using it just yet. Should you invest in these stablecoins? Unless you invest today in the foreign exchange markets, there is no justification to do so in a stablecoin. We need to understand that the global financial system is changing. As tiny retail users, we should wait for the rules of the game to settle down before we enter this digital financial superhighway. Monika Halan is the best-selling author of the Let's Talk series of books on money. The views are personal.
New Indian Express
41 minutes ago
- Business
- New Indian Express
Will stablecoins become everyday money?
NEW YORK: Stablecoins might not make people into surprise millionaires the way bitcoin did, but these cryptocurrencies are designed to be more useful when it comes to daily life. The GENIUS Act, a regulatory framework recently signed into law by US President Donald Trump, may boost stablecoins, digital currencies with values pegged to a country's traditional currency. Here are potential uses for stablecoins, the most popular of which are Circle's USDC and Tether's USDT, both tied to the US dollar. Money Transfers Most people who want to send money to one another, particularly across national borders, rely on services such as Western Union, Ria and MoneyGram, which charge relatively high fees for the service. Stablecoins allow direct transactions between people, making funds instantly available to recipients, typically at lower fees. Sending money in the form of stablecoin has the added benefit of protecting its value "in places where the fiat currency is not particularly desirable because of issues like hyperinflation or government controls," according to Henry Kim, a professor at York University in Canada. The GENIUS Act, passed by Congress in mid-July, should ramp up a trend of using stablecoins for cross-border payments, said Stanford University finance professor Darrell Duffie. Another use, already offered by several startups, is enabling companies to pay workers living abroad directly in stablecoin instead of dealing with local currencies and financial systems. Online shops Small merchants selling wares online can use stablecoin transactions to improve margins and pay less to credit or debit card networks, according to MIT cryptoeconomics lab researcher Christian Catalini. Visa and Mastercard combined collected around $187 billion in fees on card purchases in the United States last year, according to the Merchant Payments Coalition. Conducting sales in stablecoins bypasses banks or payment systems, reducing transaction costs.
Economic Times
3 hours ago
- Business
- Economic Times
Insiders say this might be the big crypto presale of the year
Advertorial Spotlight Wire Bitcoin Hyper just broke the $5.5 million milestone in its hot new crypto presale. In a year packed with major regulatory wins and institutional capital flow, this Bitcoin Layer-2 chain could be the next underrated altcoin to make a powerful move. Bitcoin hits new highs, and the rules just changedOn July 18th, Bitcoin broke past $123,000. Interest from governments and institutions helped it set a new all-time high. For example, the U.S. House passed the GENIUS Act in July, establishing clear rules for crypto operations in the isn't going anywhere, and neither is the capital. Institutions have been increasingly stacking BTC in their treasuries, eyeing a bull surge over the coming months. While Bitcoin proves its worth as a reliable storage of value, the old narrative of 'digital gold' is morphing into something more dynamic. That's where Bitcoin Hyper ($HYPER) comes in. Why Bitcoin Hyper stands out during this busy crypto season Bitcoin Hyper is a Layer-2 that uses Solana's Virtual Machine (SVM). Bitcoin Hyper gives developers and degens alike what they've been asking for years: fast, low-fee Bitcoin transactions ready for dApps, meme coins, and everything in it's on its way. In a sea of crypto ICO coins with grand visions and no substance, Bitcoin Hyper stands out with its devnet launch. It supports programme deployment through the Solana CLI, full transaction flows in the web console, live portfolio data, and a chain explorer. While the network behaves like Solana, it's wired to Bitcoin's battle-tested security model. It's already running internal use cases, porting contracts, and delivering stable performance. 'So far, performance is stable and transaction latency is fast - even with basic configurations. This is our 'internal alpha, ' notes the website. Once the full version is out, the network could enable sub-second swaps at low gas fees and potentially access a growing pool of Bitcoin-native decentralised finance (DeFi) tools. With SOL inching toward its previous highs, Bitcoin Hyper is riding both Bitcoin and Solana optimism simultaneously. Crypto YouTube channel '99Bitcoins' released a positive video about $HYPER this week. Watch Here: $5.5 million raised: Bitcoin Hyper presale is racing aheadWith regulatory clarity, institutional inflows, and infrastructure finally catching up to narratives, 2025 might be an important year for crypto. For smart investors, this is a window to diversify their portfolios before the next bull cycle begins. If you're amused by Bitcoin's rise and wondering what's next, Bitcoin Hyper is a top crypto watch now. However, once the $HYPER presale closes, and it hits exchanges, the market will decide the token price. Currently, it is available for fixed, discounted prices on the official website. Bitcoin Hyper's crypto presale is tiered, and each round pushes the price up. That means the earlier the entry, the stronger the of just holding BTC and watching candles, investors can dip into the DeFi and meme coin markets using $HYPER. Users can bridge BTC to Layer-2, earn, spend, and then bridge out. The process is backed by zero-knowledge proofs and anchored to the base Bitcoin chain. Early supporters also get passive rewards with annual percentage yields (APYs) currently sitting above 220%, adjusted dynamically as more tokens are locked into the smart contract. And with $5.5 million already raised, the project is witnessing strong traffic from early movers. How to grab $HYPER during the presale phase Investors need a wallet like Best Wallet or Metamask loaded with ETH, USDT, or BNB to join the hot new presale. Now, head to the Bitcoin Hyper presale site and connect your wallet by tapping the 'Buy' or 'Connect Wallet' button. Enter the amount of $HYPER you'd like to purchase. To lock it in for passive rewards right away, choose the 'Buy and Lock' option. Confirm the transaction in your if you'd rather buy with fiat cards, connect your wallet and select 'Buy With Card.' The $HYPER tokens will be credited to this wallet after the crypto ICO ends. Visit the $HYPER presale Contact Name: Bitcoin Hyper Email: support@ *You must be at least 18 years old to access this site. Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to the same. TIL does not guarantee, vouch for or necessarily endorse any of the above content, nor is it responsible for them in any manner whatsoever. The article does not constitute investment advice. Please take all steps necessary to ascertain that any information and content provided is correct, updated and verified. N.R. 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The Sun
5 hours ago
- Business
- The Sun
Will stablecoins become everyday money?
NEW YORK: Stablecoins may not create overnight millionaires like Bitcoin once did, but they're designed for more practical, everyday use. The GENIUS Act, a regulatory framework recently signed into law by US President Donald Trump, may boost stablecoins, digital currencies with values pegged to a country's traditional currency. Here are potential uses for stablecoins, the most popular of which are Circle's USDC and Tether's USDT, both tied to the US dollar. Money transfers Most people who want to send money to one another, particularly across national borders, rely on services such as Western Union, Ria and MoneyGram, which charge relatively high fees for the service. Stablecoins allow direct transactions between people, making funds instantly available to recipients, typically at lower fees. Sending money in the form of stablecoin has the added benefit of protecting its value 'in places where the fiat currency is not particularly desirable because of issues like hyperinflation or government controls,' according to Henry Kim, a professor at York University in Canada. The GENIUS Act, passed by Congress in mid-July, should ramp up a trend of using stablecoins for cross-border payments, said Stanford University finance professor Darrell Duffie. Another use, already offered by several startups, is enabling companies to pay workers living abroad directly in stablecoin instead of dealing with local currencies and financial systems. Online shops Small merchants selling wares online can use stablecoin transactions to improve margins and pay less to credit or debit card networks, according to MIT cryptoeconomics lab researcher Christian Catalini. Visa and Mastercard combined collected around US$187 billion (RM791 billion) in fees on card purchases in the US last year, according to the Merchant Payments Coalition. Conducting sales in stablecoins bypasses banks or payment systems, reducing transaction costs. E-commerce giants Amazon, Walmart, China's and even travel platform Expedia are considering creating their own stablecoins. This is a way for the online giants to lower fees and make customer loyalty programmes more enticing, said Catalini. Having custom stablecoins would also allow the companies to offer financial services and, if widely adopted, could deprive banks of deposits they use for lending. A broad shift to stablecoin would spare multinational companies from adverse effects exchange rates can have on earnings but raises questions about security. The traditional financial system invests heavily in protecting customers from fraud and keeping people's accounts secure. Business dealings Stablecoins 'are likely to have far greater consequences' when it comes to business between companies, according to Kim. Liu Qiangdong, founder of Chinese conglomerate has spoken about how stablecoin could slash cross-border payment costs by 90% and completing transactions in seconds instead of days as is currently the case. Kim says generative AI agents capable of independently handling computer tasks are well-suited to automatically tend to stablecoin transactions. – AFP
Yahoo
6 hours ago
- Business
- Yahoo
Coinbase Reports Earnings This Week. Here's How Much Traders Expect the Stock to Move
Coinbase Global (COIN) is set to report second-quarter earnings after the closing bell Thursday, with traders anticipating a big swing from the crypto exchange's stock. Recent options prices suggest shares could move close to 7% in either direction by the week's end from Tuesday's level just above $371. Such a move could push Coinbase's stock to $396 at the high end, or leave it at $347 on the low end. The crypto exchange's first-quarter revenue and adjusted net income were lighter than expected, and shares fell about 3% the day after the release. Coinbase attributed the results to "softer trading markets," which analysts expect likely continued to be the case in the second quarter. Crypto market volatility could drag on Coinbase's results in the short term, but its stock has added nearly half its value in 2025 as the company made acquisitions to position itself as a one-stop shop for crypto enthusiasts, and amid optimism about a more favorable regulatory environment. In May, Coinbase acquired crypto options exchange Deribit in a cash-and-stock deal valued at $2.9 billion. Earlier this month, it acquired Liquifi, which helps startups manage and distribute tokens. Coinbase has also stepped up its presence in the payments space, which could see greater traction following the passage of the GENIUS Act. The company launched an on-chain platform for businesses that want to manage stablecoin transactions, and partnered with American Express for a credit card that offers rewards denominated in Bitcoin. Coinbase is expected to report a rise in second-quarter revenue from a year ago, but a decline in adjusted earnings before itemization, depreciation and amortization, or EBITDA, according to estimates compiled by Visible Alpha. Wall Street analysts are divided on the stock, with five calling it a "buy," five giving it a "hold," and one issuing a "sell" rating. Their mean target is $381.40, implying upside of about 3% from Tuesday's close. Read the original article on Investopedia
