In recent, the New York Financial Services Department (NYDFS) approved two stablecoins based on Ethereum network(functionality based on Ethereum) , Gemini Dollar issued by Gemini and Paxos Standard by Paxos. Each token with a support of $1 has been designed to provide the stability of legit currency, as well as the transaction speed and cross-board feature of cryptocurrencies.
Regarding to the impact on the world economy after legalizing Tether USDT(the largest stablecoin so far and the Tether price always sticks up for the value of $1 USD), many analysts thought that the problem of to digitize US dollar was unsolvable, and nothing could stop the pace of the digital dollar.
As soon as yesterday, the New York Financial Services Department approved two stablecoins at the same time. Undoubtedly, cryptocurrency has taken a big step toward compliance. These brave private companies played as headquarters bringing the dollar behind to the world by operating the stablecoins.
So far the stablecoins are not as big as the legit, eventually used as mediums intending finally for the legit in whole transaction progress. The stablecoins, however could have made the national barrier no longer exist. These also might help to avoid the depreciation of the local currency in Venezuela, for example. In present, investors have to cash out the USDT through Tether exchange(around 200 exchanges have USDT supported and that’s the only way to convert other cryptocurrencies into stablecoins), and only to US dollar though, it is never complicated to bridge other legit currencies. Moreover, if to adopt USDT, the legit currency lending under influenced by any other outside factors, will be replaced by the lender based on USDT and, or other USD backed cryptocurrencies. That is, the entire financial system re-establishes based on USDT instead of re-foundation on legit currency.